Oracle Corporation has announced that it will reduce more of its workforce. This will be done in the European and Asian markets.

The company is forced to take this step since its restructuring cost has already shot up beyond $1 billion after it amalgamated Sun Microsystems with itself.

The costs that it is now facing are much higher than it expected and so the company is now looking for ways to reduce the costs. And cutting workforce is one of the first steps that it has taken.

In its regulatory filing, Oracle had said that it had estimated $675 million and $825 million as restructuring costs. But it crossed that limit long back. The total cost for Sun's takeover was $5.6 billion.

The acquisition was done last year. And most of the rise in costs, said Oracle, has been caused by the severance payments made to the laid-off employees.

Oracle further said in its statement that the increased costs will be borne by the company throughout 2011.

Chief Executive of Oracle, Larry Ellison had described the takeover as very strategic in nature and that it would help Oracle both on the organic as well as the inorganic front.