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business/news//The Economic Times
Oracle is finalizing its largest workforce reduction, with approximately 30,000 employees departing by mid-June.
Oracle is laying off approximately 30,000 employees, about 18% of its global workforce, by mid-June.
KEY POINTS
Despite strong financial performance, Oracle is shifting $50 billion in spending toward AI infrastructure projects.
Oracle Health experienced the deepest cuts, with 8,000 to 10,000 jobs lost, impacting major healthcare projects.
Oracle included the WARN Act notice period in severance calculations, reducing the actual severance employees receive.
While laying off thousands, Oracle filed over 3,000 H-1B visa petitions during the same period, drawing scrutiny.
Synopsis
Oracle layoffs 2026: Oracle is finalizing its largest workforce reduction, with approximately 30,000 employees departing by mid-June. Despite strong financial performance and significant growth in its AI business, the company is redirecting resources towards AI infrastructure. The layoffs, particularly within Oracle Health, have raised concerns about ongoing projects and obligations.
Oracle layoffs 2026: Oracle's largest workforce reduction is entering its final stage, with thousands of employees reaching their official separation dates between June 1 and June 15.
The company is expected to complete the departure of approximately 30,000 workers, representing around 18% of its global workforce. What makes the layoffs unusual is that they are unfolding during a period of strong financial performance rather than corporate distress, as per a report.
Just weeks before the layoffs were announced, Oracle reported better-than-expected earnings, rising cloud revenue, and rapid growth in its artificial intelligence business.
Oracle Layoffs 2026: Strong Earnings Did Not Prevent Massive Job Cuts
Oracle's third-quarter fiscal 2026 results showed significant growth across several key areas of the business.
Revenue climbed 22% year-over-year to $17.2 billion, while cloud revenue surged 44% to $8.9 billion, accounting for more than half of total company sales, as per a Tech Times report.
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The company's AI-related businesses expanded even faster. Oracle Cloud Infrastructure's AI segment posted revenue growth of 243%, while multicloud database revenue increased 531%.
GAAP net income reached $3.7 billion for the quarter.
Oracle Layoffs 2026 Reason: Oracle's Focus Has Shifted Toward AI Infrastructure
Company leadership has been direct about the reason behind the restructuring.
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Oracle has committed approximately $50 billion in capital spending for fiscal year 2026, with much of that investment directed toward AI data center construction and infrastructure expansion, as per the Tech Times report.
The company is also a major participant in Stargate, the AI infrastructure venture involving OpenAI and SoftBank.
Executives described the layoffs as part of a broader effort to redirect resources away from people-intensive operations and toward AI-focused infrastructure projects.
Oracle's remaining performance obligations reached $553 billion at the end of the quarter, up 325% from a year earlier, reflecting growing demand for long-term AI infrastructure contracts, as per the Tech Times report.
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The firm also reported approximately $135 billion in notes payable and borrowings, making cash flow management a key factor in its strategy.
Oracle Job Cuts: Thousands of Employees Face Final Separation Decisions
As termination dates arrive, affected employees continue reviewing severance agreements and weighing whether to sign them.
Oracle offered severance based on tenure, providing four weeks of base pay for the first year of service plus one additional week for every year worked, up to a maximum of 26 weeks.
Employees must sign a release waiving their right to sue the company in order to receive the benefits.
For some workers, stock compensation became a major issue. Oracle did not accelerate the vesting of restricted stock units, meaning unvested shares were forfeited once employment ended.
One long-tenured employee reportedly lost approximately $1 million in unvested RSUs that were only months away from vesting.
Workers Pushed for Better Compensation Packages
Some employees argued Oracle's package compared unfavorably with severance programs announced by other technology companies.
A group of at least 90 laid-off workers signed a petition requesting improved terms similar to those offered by Meta, Microsoft, and Cloudflare.
The petition highlighted differences in severance pay, healthcare coverage, and stock vesting treatment.
Oracle informed employees that its severance package would remain unchanged.
WARN Act Questions Continue to Draw Attention
Another major issue involves Oracle's use of the federal WARN Act notice period.
The company provided employees with 60 days of paid administrative leave before termination, satisfying the federal notice requirement.
However, the report noted that Oracle included the WARN notice period within its severance calculation instead of treating it as an additional payment.
For some employees, this meant the WARN period consumed most or all of their severance entitlement.
Questions also emerged regarding Oracle's classification of many employees as remote workers, since WARN Act protections often depend on the number of affected workers tied to a specific employment site.
Oracle Health Experienced the Deepest Cuts
The largest workforce reductions occurred within Oracle Health, the division created through Oracle's $28.3 billion acquisition of Cerner, as per the Tech Times report.
An estimated 8,000 to 10,000 employees were affected.
The cuts attracted attention because Oracle Health supports major healthcare systems and government projects, including the Department of Veterans Affairs' ongoing electronic health record rollout.
The layoffs also prompted scrutiny from lawmakers and healthcare organizations concerned about the division's ability to meet ongoing obligations.
H-1B Filings Added Another Layer to the Debate
The layoffs coincided with Oracle filing approximately 3,126 H-1B visa petitions during fiscal years 2025 and 2026, including 436 petitions filed during fiscal year 2026, as per the Tech Times report.
The timing of the filings drew criticism from some observers and attracted attention from lawmakers who questioned the contrast between workforce reductions and ongoing visa applications.
FAQs
How many workers is Oracle laying off?
Oracle is expected to separate approximately 30,000 employees.
What percentage of Oracle's workforce is affected?
The layoffs represent about 18% of Oracle's global workforce.
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