Hyderabad sees 12,000 Oracle layoffs amid global cuts
HYDRERABAD: US technology company Oracle has laid off 30,000 employees globally in a single move on Tuesday, including about 12,000 employees in India.
The layoffs affect around 18 per cent of Oracle’s global workforce of about 1.63 lakh employees across the US, India, Canada and Mexico. A significant number of Indian employees are also among those removed in the US and Canada. Many of those affected are in managerial roles.
Thousands of employees received termination emails simultaneously at 6 am US time. The company said the roles were no longer required as part of a restructuring exercise. March 31 was set as the last working day, and access to company laptops was revoked immediately.
The move has triggered concern across the technology sector. It is seen as the largest job cut in Oracle’s history. With reports of further layoffs, employees remain anxious about more announcements.
AI investments drive restructuring decision
Oracle has entered the artificial intelligence data centre sector with a $156 billion project. It has already raised $50 billion in debt for this initiative. The layoffs are part of efforts to reduce costs, which could free up about $10 billion in cash.
Profit rises despite job cuts
The company is not facing losses. In the latest quarter, Oracle’s profits rose 95 per cent year-on-year to $6.13 billion. It has also secured major deals with large companies. The decision to cut jobs comes despite strong financial performance.
Severance package details
Laid-off employees will receive the last month’s salary along with three additional months’ pay. They will also be paid 15 days’ salary for each year of service. Unused leave until March 31 can be encashed. Gratuity will be paid as per labour laws. These benefits apply only to those who resign within the company’s specified deadline.
