Oracle Mass Layoffs: What India's 12,000 Fired Employees Will Actually Get As Severance

In what is being described as one of the largest job cuts in India's tech sector, Oracle laid off an estimated 30,000 employees globally representing roughly 18 percent of its total global workforce of around 162,000 people. India was hit the hardest, with approximately 12,000 employees cut from Oracle's operations there.

The layoffs affected different teams including cloud, enterprise, engineering, product and operations, with reports suggesting certain teams faced more impact. India operations saw cuts across development centres and support roles.

Oracle layoffs: Here's how much Indian employees got as severence

Oracle has not officially confirmed the severance details, but employees at Oracle's India Development Centre in Bengaluru have shared what they claim are details of the packages received on forums including Reddit.

According to Oracle India's outlined severance structure, employees will receive pay equivalent to one month of salary for each year of service, this includes 15 days mandated by Indian labour law and an additional 15 days offered by Oracle as a goodwill gesture.

In addition, employees will be given notice period pay of one month, along with an ex-gratia top-up of two months' salary. The company has also announced health insurance coverage worth Rs. 20,000 as part of the package. Employees are entitled to unused leave encashment and gratuity, which will be paid separately. All calculations are based on gross salary.

For an employee with 2.5 years of service, their tenure will be rounded up to 3 years. Adding one month for the notice period and two months as ex-gratia, the total severance payout comes to six months of gross salary, excluding insurance benefits, leave encashment, and gratuity.

Oracle layoffs: Severence package comes with a condition

A significant condition is attached to receiving the full package. The benefits are applicable only to employees who voluntarily and amicably resign. This condition has raised concerns among laid-off staff, who are questioning whether accepting these terms could affect their legal rights.

Employees are required to sign separation documents, often delivered digitally via DocuSign, to receive their payout. Reports suggest that failure to sign these agreements could result in forfeiture of severance benefits.

Oracle layoffs: India vs US - a stark divide in payouts

The comparison between what Indian and American employees are receiving has sparked anger among those affected.

For US employees, Oracle has outlined a clearly defined severance formula. The payout begins with four weeks of base salary for the first year of service, followed by an additional one week of pay for each subsequent year. The total severance is capped at 26 weeks, regardless of tenure.

Notably, the severance package does not appear to include extended healthcare benefits or additional perks, and employees reportedly lose unvested RSUs (Restricted Stock Units) upon termination.

When compared to other recent layoffs in the technology sector, Oracle's severance offering appears relatively modest. Companies like Block and Meta have previously offered more generous packages, including extended healthcare coverage and higher base payouts linked to tenure.

Why is Oracle doing this?

Oracle disclosed a $2.1 billion restructuring plan in its March 2026 10-Q SEC filing, with $982 million already recorded in the first nine months of fiscal 2026. The company posted a 95 percent jump in net income last quarter, reaching $6.13 billion, this is not a company in revenue distress. It is making a capital-intensive bet on AI infrastructure and eliminating tens of thousands of employees to close the financial gap.

The layoffs are expected to free up $8 to $10 billion in cash flow, money that will go directly toward funding data centres, GPU clusters, and cloud infrastructure for clients including OpenAI, Meta, and Nvidia.

Oracle layoffs: Another round of layoffs coming within a month

According to Business Standard, which cited two impacted employees including one from Oracle's HR department, another round of layoffs in India is expected within a month.

Last week, employees across the US, India, Canada, Mexico, and other countries received termination emails from 'Oracle Leadership' at approximately 6 am local time, with no prior warning from HR or their direct managers. The emails informed employees that their roles had been eliminated as part of a broader organisational change, and that the day of the email was their final working day. Access to company systems was cut immediately.

Many employees in Bengaluru described the situation as stressful and unexpected. The decision came as a shock because the company did not consider job roles, experience, or seniority before removing employees. Workers were immediately locked out of company systems.