Will Indian employees laid off by Oracle receive a severance package?

Many across the world have been left shocked after Oracle announced layoffs. The cloud computing firm, owned by Larry Ellison, is cutting tens of thousands of jobs. In India alone, an estimated 12,000 people have been laid off.

The development comes as the company is facing declining cash flow and questions over an increasing debt burden tied to heavy investments in artificial intelligence (AI).

The development comes a week after Meta began laying off hundreds of employees. Amazon has also announced it would cut around 16,000 corporate roles, after previously cutting 14,000 employees.

But what do we know? Are more layoffs coming? Will Indian employees receive a severance package?

Let’s take a closer look.

How it began

What happened: It was an email sent to Oracle employees across the world that delivered the grim news. The company said this move was in line with a “reduction in force and other terminations”.

“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,” the email read, according to a report in Business Insider.

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“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. We are grateful for your dedication, hard work, and the impact you have made during your time with us,” the email continued.

What employees were told: “After signing your termination paperwork, you will be eligible to receive a severance package subject to the terms and conditions of the severance plan. You will receive an email from DocuSign to your Oracle email address with details on your severance and termination date," it stated.

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“Access to your computer, email, voicemail, and files will be deactivated soon, and you will be unable to log into your computer.”

What we know

Over 30,000 employees were laid off across the world

Layoffs hit:

• Engineering

• Software development

• Product management

• Customer support

Where cuts were deepest: Especially within the Oracle Fusion Cloud Applications and Oracle Cloud Infrastructure (OCI) divisions, according to a report in BBC.

Not performance-linked: The layoffs were not carried out on the basis of performance. This is the biggest layoff by a tech firm over the past year.

What about severance?

According to documents viewed by Business Insider, employees in the US will receive four weeks’ base salary, plus one week of severance for each additional year of employment. However, that number is capped at 26 weeks.

“The Oracle America, Inc. Severance Pay Plan defines the severance pay benefits that you are eligible to receive," the mail stated. “Per the plan, you are eligible for enhanced severance pay benefits of: four weeks of base salary for your first year of employment, plus one week’s salary for each additional year of employment, based on your most recent hire date, up to a combined maximum of 26 weeks of base salary.”

The fine print: However, as noted, this is contingent on employees signing their termination paperwork.

How Oracle compares

More modest than peers: People in the know told Business Insider that Meta in 2025 gave employees 16 weeks of pay and an additional two weeks for every year of service, plus six months of health insurance coverage in the severance package.

Block, meanwhile, gave employees 20 weeks of salary, plus one additional week per year of work. They also retained healthcare for six months, provided a stipend of $5,000 (Rs 4.66 lakh approx.), and the option of retaining their work device.

Are more layoffs coming?

Short answer: It is possible.

Oracle, as of May 2025, had around 162,000 people in its employ. The company has relied heavily on debt markets to fund its expansion of $50 billion (Rs 4.67 lakh crore approx.) planned raise in debt and equity

Live Mint citing TD Cowen analysts said cuts of around 30,000 employees could give Oracle $8 billion to $10 billion (Rs 74,640 crore to Rs 93,300 crore approx.) in incremental free cash flow

Market pressure: The company’s shares have also experienced a massive 25 per cent decline in 2026. This stands in stark contrast to most other big tech and AI firms on Wall Street.

Will Indian employees receive a severance package?

What we know: The terms under which Indian employees have been laid off remain unknown.

What experts say: However, experts believe it is likely to be on the lines of those in America. That is, those laid off may receive severance based on years of service, with a cap applied.

Bottom line: This would be in line with local labour regulations and company practices.

FAQs

1) Will Oracle employees in India receive severance pay?
While not officially confirmed, experts expect Indian employees to receive severance aligned with company policy and local labour laws, likely based on tenure.

2) How much severance is Oracle offering globally?
In the US, Oracle is offering four weeks’ base pay plus one week per year of service, capped at 26 weeks.

3) Why is Oracle laying off employees?
The layoffs are linked to declining cash flow, rising debt, and heavy investments in AI, alongside broader restructuring efforts.

With inputs from agencies