Oracle is facing growing backlash from former employees following its large-scale global layoffs earlier this year, with workers questioning severance policies, loss of stock compensation and the handling of labour protections under US law.
The company reportedly eliminated around 20,000 jobs across the US, India and several international locations as part of a broader restructuring exercise announced on 31 March.
According to reports, employees began receiving termination notices early in the morning through company-wide emails stating that their roles had been eliminated with immediate effect. Several former workers described the process as abrupt, with some discovering they had lost access to internal systems before formally learning they had been laid off.
One of the biggest concerns among affected employees centres on restricted stock units, or RSUs, which form a major part of compensation for many technology professionals. Reports indicated that some long-serving employees lost substantial unvested equity, including stock grants that were only months away from vesting.
Unlike some major technology companies that accelerated vesting schedules during layoffs, Oracle reportedly did not provide accelerated stock vesting for impacted workers. Former employees argue this resulted in significant financial losses beyond the loss of salary itself.
The company’s severance package has also come under scrutiny. According to reports, Oracle offered around four weeks of pay for the first year of service, followed by an additional week for each subsequent year, with severance capped at 26 weeks. Employees were also reportedly required to waive their right to pursue legal action in exchange for severance benefits.
Another major issue relates to the US WARN Act, which generally requires employers to provide advance notice during mass layoffs. Some former employees alleged that Oracle classified them as remote workers despite hybrid working arrangements, potentially limiting eligibility for certain WARN protections tied to office locations.
The controversy comes as Oracle simultaneously accelerates its large-scale AI infrastructure expansion and data centre investments linked to partnerships with companies.
The situation reflects broader tensions emerging across the technology industry, where employees are increasingly scrutinising how companies handle layoffs, equity compensation and worker protections during large-scale restructuring exercises.
