PeopleSoft chief executive officer and president Craig Conway was fired by the company's board of directors, and immediately replaced by PeopleSoft's founder and chairman Dave Duffield.
Conway's dismissal was due to a "loss of confidence" in the chief executive's ability to lead PeopleSoft.
Duffield plans to focus his efforts as PeopleSoft chief executive on "technology innovation, a relentless commitment to our customers, and a renewed drive to keep PeopleSoft a great place to work for all employees".
The board of directors also appointed Kevin Parker and Phil Wilmington as co-presidents and Aneel Bhusri as vice-chairman of the board.
Conway has been embroiled for the past 15 months in Oracle's hostile bid for the company through an all-cash tender offer to PeopleSoft's shareholders, now valued at $7.7bn (£4.3bn).
In July, Conway blamed PeopleSoft's sagging profits on the struggle with Oracle. The enterprise software maker was unable to make its own reduced revenue targets in the second quarter, and posted a year-over-year net income drop of 70%, from $36.5m to $11m.
Laura Rohde writes for IDG News Service