Hyperion has announced plans to cut 500 jobs by the end of 2019, after an investment of $2.3 billion by Microsoft and $1 billion by Oracle.
Hyperion CEO Bill Evers said the cuts would save about $300 million over the next 12 months.
“We will be taking these actions to improve our financial position, reduce our costs, reduce debt and create a more efficient organization,” he said in a statement.
Hyperions financial performance is critical for its shareholders.
In December, the company announced a $6 billion impairment charge, which will be used to fund the company’s restructuring.
Hyperon’s shares have fallen about 20 percent this year, after its IPO.
Hyperons earnings are likely to suffer because of the restructuring, but it is unlikely to be the last time the company will need to make significant layoffs.
In 2017, Hyperion posted a net loss of $1.3 million, and Evers recently warned that the company is “going to need a $1 million cash injection in the next two to three years.”
The company has about $1 trillion in assets under management, according to Bloomberg data.
Hyperison is also under fire for using technology developed by Oracle, which is not the same technology that is used by Oracle and Microsoft.
“Oracle is not going to make this kind of commitment, nor is Hyperion,” Evers told Bloomberg.
Hyperron’s $9.5 billion acquisition of Microsoft last year also came with a massive price tag.
Hyperiron is owned by Microsoft, but the two companies do have an ownership stake in the company, according a statement from the company.