Oracle fires 30,000 employees via email and refuses to negotiate better compensation

Business Technology

Laid-off Oracle workers tried to negotiate better severance packages, but the tech giant refused their requests

The mass layoffs at Oracle, which affected between 20 and 30 thousand people at the end of March, brought to the fore a discussion about the limits of severance packages in the technology sector. Unlike other giants in the market, the company adopted a rigid stance, refusing to negotiate terms with former employees and cutting benefits that are common in dismissals of this size.

The point of greatest conflict involves shares (RSUs), which make up a large part of technology professionals’ compensation. Oracle chose not to bring forward the schedule of actions that were close to expiry; whoever was fired lost the right to any paper that was not released on the cutoff date. There are reports of veteran employees failing to receive up to US$1 million in shares that were due to expire in just four months.

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Another central issue was the use of remote work classification to avoid worker protection laws. US law (WARN Act) requires companies to give notice of mass layoffs two months in advance when the cut affects 50 or more people in the same location.

By registering employees as remote — even those who lived near offices and worked in a hybrid arrangement — Oracle was able to bypass this requirement in states with less stringent rules. Furthermore, for those who were protected by law, the company deducted the amount of prior notice from the final compensation calculation, instead of adding up the benefits.

Oracle’s rigidity drew attention when compared to other companies that have also made cuts recently:

  • Goal: It offered 16 weeks of base pay, plus two weeks per year worked.
  • Cloudflare: It guaranteed the payment of salaries until the end of 2026 and brought forward the maturity of shares.
  • Microsoft: Accelerated the action schedule for veteran employees.

The attempt by 90 former employees to negotiate collectively through a petition was rejected by the company. Oracle did not comment on employee classification criteria or the terms of the packages offered.

Source: techcrunch.com

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