Oracle has confirmed a new wave of layoffs affecting employees worldwide as the company redirects its financial focus towards substantial investments in AI infrastructure. This organizational shift, detailed in termination emails sent to affected staff, includes immediate deactivation of system access and a severance package capped at 26 weeks of base salary, which is less generous than some industry peers. The tech giant has allocated an additional $700 million to its restructuring plan, escalating the total estimated cost of these layoffs to around $2.8 billion, primarily for severance payments. Concurrently, Chairman Larry Ellison is set to sell up to 50 million shares of Oracle stock by October 2026, a move expected to generate between $7.5 billion and $8.75 billion, further underscoring Oracle's aggressive strategy in capitalizing on the growing AI market.

Oracle has confirmed a new wave of layoffs affecting employees worldwide as the company redirects its financial focus towards substantial investments in AI infrastructure. This organizational shift, detailed in termination emails sent to affected staff, includes immediate deactivation of system access and a severance package capped at 26 weeks of base salary, which is less generous than some industry peers. The tech giant has allocated an additional $700 million to its restructuring plan, escalating the total estimated cost of these layoffs to around $2.8 billion, primarily for severance payments. Concurrently, Chairman Larry Ellison is set to sell up to 50 million shares of Oracle stock by October 2026, a move expected to generate between $7.5 billion and $8.75 billion, further underscoring Oracle's aggressive strategy in capitalizing on the growing AI market.

Oracle has confirmed a new wave of layoffs affecting employees worldwide as the company redirects its financial focus towards substantial investments in AI infrastructure. This organizational shift, detailed in termination emails sent to affected staff, includes immediate deactivation of system access and a severance package capped at 26 weeks of base salary, which is less generous than some industry peers. The tech giant has allocated an additional $700 million to its restructuring plan, escalating the total estimated cost of these layoffs to around $2.8 billion, primarily for severance payments. Concurrently, Chairman Larry Ellison is set to sell up to 50 million shares of Oracle stock by October 2026, a move expected to generate between $7.5 billion and $8.75 billion, further underscoring Oracle's aggressive strategy in capitalizing on the growing AI market.

Oracle initiated another round of layoffs on Monday, confirming earlier speculation that the tech giant might be cutting jobs as it shifts its spending priorities. 

Employees worldwide reportedly received termination emails at around 6:00am today. The message read, “We are sharing some difficult news regarding your position. After careful consideration of Oracle's current business needs, we have made the decision to eliminate your role as part of a broader organisational change. As a result, today is your last working day.”

According to the email, access to computers, email, voicemail and files will be deactivated for the affected employees. They are also prohibited from accessing any of Oracle’s confidential information. The emails were signed off by the Oracle Leadership, promising the employees that another email will confirm details about the severance pay and termination date. 

According to documents accessed by the Business Insider in March, the severance pay is capped at 26 weeks. The package was based on the most recent hire date, and the payment was worth four weeks of the employee’s base salary for the first year of employment. Each additional year of employment was one week’s salary. 

However, the total amount received will not go beyond the sum of 26 weeks of base salary. This is well below the severance offered by other industry players, including Microsoft and Salesforce, with 39 weeks and 30 weeks of pay, respectively. 

The most recent layoffs and Indian workers' severance pay is also expected to follow the same plan. 

In a recent SEC regulatory filing, Oracle mentioned an extra $700 million to execute its restructuring plan, increasing the total estimated cost of layoffs to around $2.8 billion. These costs largely included severance payments. 

Oracle’s restructuring move comes amid the tech giant’s huge investments in AI infrastructure. As the company rushes to meet growing demand from AI companies, it has been resorting to aggressive fundraising plans, including bond sales and debt and equity funding. 

Its latest trading plan involves Chairman Larry Ellison, who owns about 40 per cent of Oracle’s stock, selling up to 50 million shares of Oracle stock till October 24, 2026. This is expected to generate around $7.5 billion to $8.75 billion, depending on share price fluctuations. 

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