Oracle layoffs shock: 30,000 jobs slashed worldwide, how much severance are employees actually getting?

Oracle has begun executing a sweeping round of layoffs across its global workforce, with reports indicating that up to 30,000 jobs may be cut, including around 12,000 in India. Employees across the United States, India and other regions reportedly received termination emails as early as 6 a.m. EST, informing them that their roles had been eliminated with immediate effect. The layoffs are closely linked to Oracle’s aggressive push into artificial intelligence infrastructure. The company is investing heavily in data centres and cloud capacity, including large-scale partnerships with OpenAI. According to reports, employees laid off in the United States have been offered a structured severance package.

The message, sent by “Oracle Leadership”, stated that “after careful consideration of Oracle’s current business needs”, the company had “decided to eliminate” the role “as part of a broader organisational change”, making that day the employee’s last working day. It added a note of appreciation for the employee’s “dedication, hard work, and contributions” during their tenure. Affected workers described the process as abrupt, with many highlighting there was “no call, no meeting… just an email. And a DocuSign,” underscoring the impersonal nature of the layoffs.

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Severance package details in the US

According to a Business Insider report, in the United States, affected employees have reportedly been offered severance of four weeks’ base salary plus one additional week per year of service, capped at 26 weeks.

The company also clarified that employees would become eligible for the severance package only after signing termination documents. The communication noted that individuals would receive further details via a DocuSign email sent to their official Oracle accounts, outlining severance terms and the final termination date, reported NDTV.

This approach aligns with standard corporate severance frameworks in the US, though the cap at 26 weeks places a limit on payouts for long-serving employees.

Severance packages in India, as per media reports, include 15 days’ salary for employees who have served the compony for at least one year. The package also includes one month’s unpaid wages up to the termination date, leave encashment, gratuity subject to eligibility, and salary in lieu of a one-month notice period. In addition, the company has offered a two-month salary top-up. This is only available to employees who opt to resign voluntarily and amicably.

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Broader restructuring and financial drivers

The company has entered large-scale commitments, including partnerships with OpenAI, and is significantly increasing capital expenditure to support AI workloads. This expansion has placed pressure on Oracle’s finances, with the company managing substantial debt while attempting to sustain cash flow. Analysts estimate that cutting between 20,000 and 30,000 jobs could generate $8 billion to $10 billion in additional free cash flow, helping fund these capital-intensive initiatives.

Market reaction and uncertain outlook

The company reported quarterly revenue of $17.2 billion, its highest in 15 years, yet investor concerns persist over debt levels and long-term returns. Oracle, which had about 162,000 full-time employees ​globally as of May 2025, is yet to comment on the development.

With further layoffs expected within weeks, Oracle’s restructuring highlights a broader shift: prioritising AI and cloud infrastructure, even at significant human cost. Meanwhile, more than 70 tech companies have cut around 40,480 jobs ​so far this year, per Layoffs.fyi, as companies increasingly reallocate resources ​toward AI, ⁠heightening fears of AI-driven disruptions among workers.