In one of the most massive workforce layoffs seen in India’s technology sector, Oracle has reportedly eliminated around 30,000 roles globally, nearly 18
per cent of its workforce. India is among one of the hardest hit country, with an estimated 12,000 employees affected across various functions. The layoffs have hit multiple verticals, including cloud, engineering, enterprise, product, and operations. Reports suggest that teams across development centres and support services in India have been impacted, with some departments seeing deeper cuts than others. While the company has not formally announced the compensation details, employees from Oracle’s India Development Centre in Bengaluru have shared insights on online platforms about the severance packages being offered. According to these accounts, employees are being compensated with one month’s salary for every year of service. This includes 15 days mandated under Indian labour laws and an additional 15 days provided by the company. On top of this, workers are said to receive one month’s salary in lieu of notice and an additional two months’ salary as an ex-gratia component. A health insurance cover worth Rs 20,000 is also part of the package. Payments for unused leave and gratuity are expected to be settled separately, with all calculations based on gross salary. Conditions Attached Severance Pay A key clause linked to the severance payout has raised concerns among affected employees. The full benefits are reportedly available only if individuals agree to resign voluntarily and accept the terms amicably. Employees are required to sign separation agreements, often sent digitally, to receive their compensation. Some reports suggest that failure to accept these conditions could lead to loss of severance benefits, prompting concerns about potential legal implications. The disparity between severance packages in India and the United States has also led to the frustration among employees. In the US, Oracle has laid out a more structured way out, offering four weeks of base pay for the first year of service and one additional week for every subsequent year, capped at 26 weeks. However, even in the US, the package appears to exclude extended healthcare benefits and additional perks. Employees also reportedly forfeit unvested stock units upon termination. Why Oracle Is Cutting Jobs Despite reporting strong financial performance, including a 95 per cent jump in net income to $6.13 billion, Oracle is undergoing a major restructuring exercise. The company has outlined a $2.1 billion restructuring plan in its March 2026 regulatory filing. The layoffs are expected to help generate between $8 billion and $10 billion in cash flow, which will be redirected toward investments in artificial intelligence infrastructure, including data centres and advanced computing systems. Key clients in this space include OpenAI, Meta Platforms, and Nvidia. Reports indicate that this may not be the end of workforce reductions. Another round of layoffs in India is expected within a month, adding to the uncertainty faced by employees.
