In one of the largest workforce reductions in India’s technology sector in recent years, Oracle has reportedly cut around 30,000 jobs globally, with a significant impact on its India operations.
Industry estimates suggest that nearly 12,000 employees in India have been affected across multiple verticals, including cloud, engineering, enterprise, product and operations. Teams across development centres and support functions are understood to have faced varying degrees of cuts.
Severance terms and concerns among employees
Although no official announcement has been made by the company regarding severance, the employees from Oracle’s India Development Centre, located in Bangalore, have been discussing the matter on various forums on the internet and explaining how much the company is offering in the form of severance pay.
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As per their accounts, the company will pay one month’s salary for each year the employee has worked there, which would include both the statutory and non-statutory amounts. Moreover, employees would receive one month’s pay in place of notice period and also get an extra two months of pay in ex-gratia form. Their health insurance and other dues, such as accumulated leave and gratuity, are supposed to be paid later.
One main drawback of accepting this offer has become the center of attention lately. The employees were asked to voluntarily resign and also sign a contract for the same, in order to be eligible for severance.
Disparity with US packages, restructuring focus
The severance package in India is far removed from what is seen in the United States, where Oracle has provided an ordinary severance package comprising base salary, with tenure taken into account, up to a capped time frame.
Nevertheless, Oracle will be carrying out layoffs in light of impressive financial performance. According to recent filings made by the company to regulators, Oracle posted significant increases in net income and has devised a $2.1 billion reorganisation strategy.
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The company is expected to channel savings from the layoffs into expanding its artificial intelligence infrastructure, including investments in data centres and advanced computing. Industry reports indicate that major clients in this space include OpenAI, Meta Platforms and Nvidia.
Sources indicate that further job cuts may follow, with another round of layoffs in India likely in the coming weeks.
