Oracle has laid off over 100 employees in India as part of a global restructuring. This move has been attributed to increasing reliance on AI and organizational changes. Affected employees will receive a severance package and one year of medical cover. The layoffs are a result of technological changes, not performance-based.
Oracle Jobs Cut: Oracle has announced staff reductions in India, with over 100 employees asked to leave their jobs. This action is part of a global restructuring and has been undertaken due to a growing dependence on AI and organizational shifts. The company has pledged to provide affected employees with 15 days' salary for every year of service and one year of medical insurance. According to sources, the layoffs have impacted cloud and other teams, with performance not being a factor.
Expansion of Layoffs in India
Sources indicate that the number of employees laid off in India could rise to hundreds in the future. Employees from cloud and other teams have been affected by this process. The Economic Times reported that Oracle stated in letters sent to affected employees that this step is part of an organizational change.
The company's letter further explained that this decision was made to streamline operations and adapt to the evolving business environment. Consequently, employees in positions no longer deemed essential to the company have been let go.
Severance and Medical Benefits
Oracle has made provisions for severance benefits for the affected employees. Employees will receive 15 days' salary for each completed year of service. Additionally, the company will provide medical insurance cover for up to one year.
According to sources, senior employees who have worked at Oracle for 15 to 20 years have also been impacted by these layoffs. While some employees have mentioned a relatively amicable departure with garden leave, many have described the process as sudden and abrupt.
Reasons for the Layoffs?
According to analysts, the primary reasons for Oracle's layoffs are technological shifts and cost-cutting measures. The company is increasing its reliance on artificial intelligence and automation, rendering some employee roles obsolete.
Employees have stated that this action is not due to performance but rather a result of technological shifts and the company's strategy. Such changes are common globally when new technologies and systems are adopted by companies.
Oracle's Financial Position
In fiscal year 2024, Oracle's revenue increased by 20 percent to reach Rs 20,459 crore. Despite this, the company deemed it necessary to strengthen its organization in line with future requirements. This step was taken to increase investment in artificial intelligence and cloud services.
Oracle employees have reacted with mixed sentiments to this decision. Some have accepted it as a necessary change, while many have described it as sudden and unexpected. Employees are particularly emphasizing that performance was not an issue in the layoff process.
