New Delhi, 1 April, CXO Media : Oracle has started a restructuring exercise globally impacting close to 30,000 employees. This includes nearly 12,000 of the Indian workforce. The voices of doom predicy another mass layoff within a month.
This round of layoffs range across the US, India and other geographies too. Oracle might reduce 18% of its global workforce of 162,000.
Multiple teams including those from cloud and enterprises businesses faced the axe. Engineering, product management and operations rolee were impacted.
There is expected to be a severe Impact on the 12,000 workforce for Oracle India, particularly across development centers and support teams.
Revenue and Health Sciences team, SaaS team, Virtual Operations Services team and Netsuite India IDC team were most severely affected.
The layoffs had taken place abruptly with many roles eliminated with immediate effect. The common perception is that Oracle has gone on this restructuring exercise to free up $8-10 bn capital for AI investments.
Oracle is already in debt to fund the expansion of its data centers. Some of these data centers are being scaled to support AI workloads even as Oracle collaborates with OpenAI.
The severance package includes 15 days salary to each employee, one month of unpaid wage till termination, leave encashment, gratuity based on eligibility, pay for a one month notice period and a two-month salary as a top up.
Oracle has set aside an additional contingency fund of $500 mn to meet such global restructuring severance costs.
