Oracle Caps Severance At 26 Weeks As Layoffs Sweep India Operations, Future Bonuses Cancelled

Oracle has imposed a 26-week cap on severance pay for employees affected by recent layoffs across its global operations, with a significant impact in India. The company has confirmed that around 3,000 Indian employees were let go, though the exact figure remains undisclosed. Oracle's severance policy grants four weeks of base salary for the first year of employment, plus an additional week for each year thereafter, with six months or more counted as a full year. The total payout does not exceed 26 weeks.

Payment of severance is typically processed within three weeks of an employee signing the agreement and returning company equipment. However, laid-off employees who are subsequently rehired within six months may be required to return part of their severance. Oracle's recent decision to cancel unvested stock options, RSUs, and corporate bonuses for laid-off staff is part of a broader restructuring effort.

The company has also canceled employee stock purchase plan contributions, refunding them without interest in the final paycheck. Oracle's India operations, which once employed over 50,000 people, have been hit by two rounds of layoffs already this year.