Oracle's latest layoffs in India affect approximately 3,000 employees. The company has capped compensation. The benefits and perks available to employees will also change upon job loss.
3000 employees laid off in India
Tech giant Oracle has once again announced major layoffs. This time, approximately 3,000 people will be laid off in India across departments like Oracle Health, Cloud Infrastructure, and Sales. The company has also released the terms of the severance packages employees will receive during this new round of layoffs.
According to the report, the company has capped the severance package for the laid-off employees at a maximum of 26 weeks, or approximately six months' basic salary. Under the formula, four weeks' basic salary will be paid for the first year, and one week's basic salary for each subsequent year of service. Furthermore, the laid-off employees' unvested stock options will be canceled, and they will not be eligible for future corporate bonuses.
How will Oracle employees receive retrenchment compensation?
Oracle's severance package is based on the employee's length of service. Severance pay is based on four weeks of base salary for the first year of employment, and one week of base salary for each additional year thereafter. The maximum limit for this severance is 26 weeks of base salary.
Additionally, if an employee works for six months or more in the last year of employment, it will be considered a full year. However, prior to payment, the employee must sign a severance agreement, and payment will be made approximately three weeks after returning company items. If an employee rejoins Oracle within six months, they may be required to return some of the severance compensation they received.
Stock and bonuses will also be affected.
According to the information, employees will lose certain stock and bonus benefits upon termination. Furthermore, all unvested stock options will be canceled upon termination. Furthermore, the employee's stock purchase plan will also terminate upon termination.
However, vested stock options typically have a three-month window to exercise them. Bonuses or commissions already earned may be received according to the plan's rules.
In which departments did Oracle have layoffs?
Oracle's recent layoffs in India span several different departments. Reports indicate that major businesses such as Oracle Health, OCI Security, Oracle Financial Services, Sales, and Data Center Operations have been affected. Employees range from freshers to mid-level management. This is reported to be Oracle's second major layoff in India this year.
