New Delhi, September 21, 2026: Oracle has reportedly carried out another round of workforce reductions in India, with around 3,000 employees potentially affected across several business functions. The latest layoffs are part of a broader restructuring exercise by the technology giant as it continues to redirect resources towards cloud computing and artificial intelligence infrastructure.
The latest job cuts reportedly involve employees working across Oracle Health, Oracle Cloud Infrastructure (OCI) Security, Oracle Financial Services, sales and data centre operations. People familiar with the matter said employees at different levels, including freshers and mid-level professionals, have been impacted.
Oracle has not publicly confirmed the exact number of employees affected in India.
Severance Pay Capped at 26 Weeks
Along with the layoffs, details of Oracle's severance policy have also emerged. According to an internal FAQ reported by Business Insider, eligible employees will receive severance based on their length of service, with the overall payout limited to a maximum of 26 weeks of base salary.
Under the reported formula, employees receive:
- Four weeks of base salary for the first year of service.
- One additional week of base salary for every subsequent year.
- Six months or more worked during the final year can count as a full year.
- The total severance cannot exceed 26 weeks of base salary.
The reported payment process requires employees to complete the separation agreement and return company property. The payment is expected to be processed approximately three weeks afterward. Employees who return to Oracle within six months could also be required to repay part of the severance, depending on the applicable terms.
Unvested Stock Awards to Be Cancelled
The restructuring will also affect certain employee stock benefits.
According to the reported severance terms, unvested stock awards and RSUs will be cancelled when employment ends. Employees generally have a limited period to exercise stock options that had already vested before termination, subject to the applicable plan rules.
Oracle's Employee Stock Purchase Plan will also end when an employee's employment terminates. Contributions made during an ongoing purchase period may be handled according to the terms of the plan.
Future Corporate Bonuses Will Not Continue
Employees affected by the layoffs will also see changes to bonus and commission eligibility.
Future corporate bonus payments will not be available after termination. However, compensation that had already been earned before the employee's final working day may remain payable under the relevant compensation or commission plan.
Second Major Layoff Round in India This Year
The latest workforce reduction is reportedly Oracle's second major layoff exercise in India during 2026.
The company had undertaken another large restructuring exercise earlier this year, with reports estimating that around 12,000 employees in India were affected during the April round. The latest cuts have therefore added to the workforce uncertainty surrounding Oracle's Indian operations.
Oracle's India operations include major technology and support centres across cities such as Bengaluru, Hyderabad, Chennai, Pune, Mumbai, Kolkata and Noida.
Layoffs Come Amid Heavy AI and Cloud Investment
Oracle's workforce restructuring comes at a time when the company is making substantial investments in AI infrastructure and data centres.
The company has been expanding its cloud infrastructure to meet rising demand for AI computing capacity. At the same time, Oracle has increased its estimated restructuring costs to around $2.8 billion for fiscal 2026, including expenses associated with severance and other restructuring activities.
The latest developments highlight the changing priorities across the global technology sector, where companies are simultaneously increasing investments in artificial intelligence and reviewing workforce requirements across traditional business functions.