Oracle has capped severance for employees affected by its latest layoffs at 26 weeks of base salary, and canceling unvested stock awards and ending eligibility for future corporate bonuses, according to an internal FAQ document seen by Business Insider.
The severance details come as Oracle has begun another round of job cuts globally, including a fresh round of layoffs in India. The latest cuts in India, the company’s largest workforce base outside the US, are estimated to have affected around 3,000 employees, people familiar with the matter said. Oracle has not disclosed the number of employees affected in India and did not respond to queries on the matter.
What Oracle is giving employees
According to Business Insider, employees affected by the latest layoffs will receive four weeks of base salary for their first year of service, followed by one additional week of base salary for every additional year worked. Six months or more in the final year of employment will count as a full year.
The total severance payout is capped at 26 weeks of base salary. The payment is expected to be made about three weeks after employees sign a severance agreement and return company property. Employees who are rehired within six months may also have to repay part of the severance, according to Business Insider.
The severance package also affects employees’ stock awards and other benefits. All unvested stock options are canceled when employment ends. Employees generally have up to three months after termination to exercise vested options, subject to the original expiration date. Some options issued through acquired companies have a shorter, one-month exercise window. All unvested restricted stock units, or RSUs, are also canceled upon termination. Previously vested RSUs remain with employees in their Fidelity brokerage accounts.
Bonuses and commissions
Employees covered by sales or consulting bonus plans may receive bonuses already earned under the terms of their compensation plans, according to Business Insider. Employees on corporate bonus plans will not be eligible for future corporate bonus payouts after termination.
Commissions stop accruing on the employee’s final day. Commissions that have already been earned but have not yet been paid will remain payable under the applicable compensation plan.
Oracle’s Employee Stock Purchase Plan also ends on the employee’s termination date. Contributions made during the current offering period are generally refunded without interest through the employee’s final paycheck.
For employees leaving during specific purchase windows, between September 16 and 30 or March 16 and 31, contributions will instead be used to purchase stock.
India layoffs affect multiple functions
Oracle implemented its second round of layoffs in India this year on Tuesday, with cuts reported across key businesses including Oracle Health, OCI Security, Oracle Financial Services, sales and data centre operations.
The latest layoffs were made across different levels, including freshers and mid-level management employees, according to people familiar with the matter. In April, Oracle carried out another major restructuring exercise in India that affected around 12,000 employees.
Oracle’s India operations span Bengaluru, Hyderabad, Chennai, Pune, Kolkata, Mumbai and Noida. The country is a major base for the company’s product engineering, cloud infrastructure and support teams. Before the layoffs this year, Oracle had more than 50,000 employees in India.
Oracle cuts thousands as AI spending rises
The latest India layoffs come as Oracle continues a broader global restructuring while spending heavily on artificial intelligence infrastructure. Oracle began a second phase of layoffs in the US this year earlier this week and is expected to make similar cuts in other regions, including Asia-Pacific and Australia.
“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,” the company said in an email notifying an affected employee, according to Business Insider.
Oracle’s global workforce fell by about 21,000 employees, or 13%, during the fiscal year ended May 31, according to a recent company filing. The company had 162,000 employees the previous year, with its workforce falling to around 141,000 by the first half of 2026.The company has also raised its estimate for restructuring costs to around $2.8 billion for fiscal 2026. The costs include severance, contract terminations and other expenses linked to the restructuring.
Cost pressures mount despite strong results
Oracle reported strong first-quarter FY27 results, with revenue rising 30% to $19.3 billion. At the same time, investors have raised concerns over the company’s spending on data centres and AI infrastructure. Oracle has committed significant capital to expand its cloud and AI infrastructure and has borrowed heavily to fund that expansion.
During an employee town hall this week, Oracle CFO Hilary Maxson said the company needed to be more careful about where it spends money. “I don’t mean doing more with less, which is a phrase that I really, really don’t like,” Maxson said. “It means simplifying processes that don’t help customers and making clear choices on where we’re going to use our resources where they have the greatest impact.”
The latest layoffs therefore come alongside a broader effort by Oracle to reduce costs while continuing to invest heavily in infrastructure needed for its AI and cloud businesses. According to Business Insider, Oracle’s maximum severance of 26 weeks is lower than the packages offered under some recent layoffs at other major technology companies. Salesforce’s standard policy provides up to 30 weeks of severance, while Microsoft offered up to 39 weeks of base pay in its latest round of layoffs.
Financial Express (Digital) has reached out to Oracle for their statement, will update as and when we receive the same.