Oracle slashes 30,000 jobs: How much severance was offered? Which departments were affected? Key questions answered

Oracle has announced 30,000 job cuts, marking the biggest single tech layoff in the last 12 months.

A CNBC report confirmed that the company's stock price declined sharply, linked to heavy spending on AI infrastructure. The report also explains that although Oracle faces market anxiety and competitive risk from generative artificial intelligence models, the company is facing increasing investor concern over rising debt tied to AI investments and its dwindling cash flow.

The company’s stock price is down 25% this year, dropping more than all of tech’s megacaps.

Here's all you need to know:

How many employees were let go?

According to reports, a total of 30,000 employees were laid off this time.

Which departments were affected?

The layoffs, not performance-based, heavily affected engineering, software development, product management, and customer support roles, particularly within the Oracle Fusion Cloud Applications and Oracle Cloud Infrastructure (OCI) divisions, a BBC report said.

How much severance pay was offered?

A Business Insider report said that the laid-off employees in the USA will receive four weeks' base salary, plus one week of severance for each additional year of employment. However, that number goes up to 26 weeks.

What did the lay-off email say?

“We are sharing some difficult news regarding your position. After careful consideration of Oracle's current business needs, we have decided 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. 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 continued, “Immediate Action Required. To receive important follow-up information, including FAQs and separation documents to help you through this transition, you must provide a personal email address. Please click here to submit a personal email address immediately. If you make a submission error, please resubmit a new form. Please note: The personal email address will only be used for correspondence regarding separation-related information and severance agreements. Access to your computer, email, voicemail, and files will be deactivated soon, and you will be unable to log in to your computer. As a reminder, you are prohibited from downloading, copying or retaining (including emailing yourself) any Oracle confidential information.”

Will the lay-offs help towards financial strain?

Cutting 20,000 to 30,000 employees could lead to $8 billion to $10 billion in incremental free cash flow, TD Cowen analysts wrote in a January note. The CNBC report also said

Netizens question whether it is AI efficiency or something else.

Oracle, which employed 162,000 people as of May 2025, tapped debt markets to finance its expansion. In January, the company announced it plans to raise $50 billion in debt and equity. Currently, there are no more plans to raise debt in 2026.