Oracle India layoffs begin with product engineering bearing the brunt

The latest market report highlights that Oracle has begun a fresh round of layoffs in India, with employees across teams receiving termination notices, as the technology major moves ahead with the cost-cutting exercise, sources stated.

The layoffs began in the US on September 14 and have continued in India, with the impact appearing to be concentrated in product engineering, they further noted. Backing and consulting teams have noted relatively fewer cuts, while some senior employees Oracle Financial Services Software (OFSS) employees have additionally been affected globally.

The exact number of impacted employees in India could not be independently ascertained but according to earlier estimates, close to 3,000 could be affected.

Moneycontrol earlier noted internal estimates putting the global layoffs in the 7,000-10,000 range.

By September 15, the firm’s global headcount had eased by at least 5,000 to 6,000 employees over the weekend, a source stated.

That stated, according to internal discussions among employees in India, the final figure could change as the exercise progresses.

Moneycontrol noted on September 1 that Oracle could undertake another round of layoffs at the beginning of middle of September, with teams being asked to reduce budgets across functions.

Oracle did not immediately respond to Moneycontrol's request for comment.

The exact scope of the current round stays unclear, and employees have been discussing the layoffs on internal Slack channels. The discussions, that stated, do not provide a reliable count of those affected, sources stated.

"More is anticipated to happen," a source stated. The uncertainty has left employees anxious, as the layoffs unfold in phases.

Product engineering bears the brunt

The current round appears to have affected product engineering more heavily than backing and consulting functions, sources stated.

Some of the senior employees affected are from OFSS global teams, they stated. Though in India, OFSS hasn’t noted layoffs in this round so far.

The layoffs caught employees in a one unit by surprise, especially as senior management had not indicated that they would be part of the exercise.

Adding to the anxiety is that fact that work continued as usual in the days leading up to the firings. In one instance, an employee discussing work-related matters as recently as September 12 was laid off shortly after, a source stated.

Employees have expressed frustration over the uncertainty, with the prospect of successive rounds of cuts leaving people unsure around whether they will be affected next.

Cost cutting amid AI investments

The layoffs come as Oracle keeps invest heavily in cloud infrastructure and artificial intelligence while seeking to manage costs and align its workforce with changing business priorities.

Oracle disclosed earlier this year it trimmed 21,000 jobs over the 12 months ended May 31, reducing its global workforce by 13 percent to 141,000.

External notes and employee trackers put the total global layoff tally closer to 30,000.

In its communication to employees, Oracle stated it had made the decision to eliminate their roles "as part of a broader organisational change" after considering its "current business needs".

The termination email stated the affected employee's last working day was the day of the communication and that they would be eligible for a severance package subject to the terms of Oracle's severance plan. Oracle additionally stated access to firm computers, email, voicemail and files would be deactivated.

(With inputs from Christin Mathew Philip)