Oracle to lay off 3,000 in India, caps severance pay
Oracle is cutting about 3,000 jobs across India in health, cloud infrastructure and sales, with severance capped at 26 weeks of basic pay.
Tech giant Oracle has announced another large round of layoffs in India, cutting around 3,000 jobs across departments including health, cloud infrastructure and sales. The company has also disclosed the terms of the severance package being offered, stirring discussion in the IT sector.
According to the details available, Oracle has capped the severance package for laid-off employees at a maximum of 26 weeks, or about six months of basic salary. Under this formula, employees will get four weeks of basic salary for their first year of service, and one week of basic salary for every year of service after that. Stock options that have not yet vested will be cancelled, and affected employees will no longer be eligible for future corporate bonuses.
Oracle's termination package is based on an employee's length of service. Employees get four weeks of basic salary for the first year, and one week of basic salary for each additional year, up to a maximum of 26 weeks of basic salary. If an employee has completed six months or more of service in their final year, that year will be counted as a full year.
Before receiving payment, employees must sign a termination agreement, and payment will be made about three weeks after company property is returned. Employees who rejoin Oracle within six months may have to return part of the severance amount they received.
Some stock and bonus benefits will also end as a result of the layoffs. Stock options that have not yet vested will be cancelled when employment ends, and the employee stock purchase plan will also close at that time. However, employees will get about three months to exercise stock options that have already vested. Under the scheme's rules, bonuses or commissions already earned may still be paid out.
The layoffs have affected several departments across Oracle in India, including Oracle Health, OCI Security, Oracle Financial Services, sales and data centre operations. Employees affected range from freshers to mid-level management. This is said to be Oracle's second major round of layoffs in India this year.
