Oracle heads into final layoff phase as thousands prepare to leave by June 15

Oracle is entering the final phase of its largest workforce reduction on record, with thousands of employees scheduled to leave the company between 1 June and 15 June as part of a restructuring that is expected to affect about 30,000 workers globally.

The job cuts, first reported by Tech Times, are notable because they come during a period of strong business performance. Just weeks before the final separation dates approached, Oracle reported double-digit revenue growth, accelerating cloud demand and rapid expansion across its artificial intelligence businesses.

The departures are expected to account for roughly 18% of Oracle's global workforce, making the programme one of the largest technology sector layoffs currently underway.

AI investment takes priority over workforce expansion

Oracle has linked the restructuring to a broader effort to reallocate resources towards AI infrastructure and data centre expansion.

The company has committed approximately $50 billion in capital expenditure for fiscal 2026, with a significant portion directed towards AI infrastructure projects. Oracle is also participating in Stargate, the AI infrastructure venture backed by OpenAI and SoftBank.

The investment push comes as demand for AI computing capacity continues to surge across the technology sector.

Oracle's latest financial results underscored that momentum:

• Revenue rose 22% year-on-year to $17.2 billion

• Cloud revenue increased 44% to $8.9 billion

• Oracle Cloud Infrastructure's AI business recorded 243% growth

• Multicloud database revenue surged 531%

• GAAP net income reached $3.7 billion

The company also reported $553 billion in remaining performance obligations, up 325% from a year earlier, reflecting growing demand for long-term cloud and AI contracts.

Employees approach final separation dates

As the final phase unfolds, affected workers are reviewing severance agreements and making decisions about compensation packages.

According to the report, Oracle offered severance based on tenure, providing four weeks of base salary for the first year of employment and one additional week for each subsequent year worked, capped at 26 weeks.

Employees must sign legal releases waiving their right to pursue claims against the company in order to receive severance benefits.

Stock compensation has emerged as a major concern for some departing employees. Oracle reportedly did not accelerate the vesting of restricted stock units, meaning unvested awards are forfeited once employment ends.

Tech Times reported that one long-serving employee stood to lose approximately $1 million in unvested stock awards that were due to vest within months.

Severance terms draw criticism

A group of laid-off employees sought revisions to the severance package, citing differences between Oracle's terms and those offered by several other large technology companies.

At least 90 former employees signed a petition seeking enhanced benefits, including improved healthcare coverage and more favourable treatment of equity awards.

The petition compared Oracle's package with programmes previously announced by Meta, Microsoft and Cloudflare.

Oracle ultimately maintained its existing severance structure.

Oracle Health records the deepest cuts

The largest share of layoffs has reportedly fallen on Oracle Health, the healthcare technology division formed following Oracle's $28.3 billion acquisition of Cerner.

Tech Times estimated that between 8,000 and 10,000 employees within the business have been affected.

The scale of the reductions has attracted attention because Oracle Health supports major healthcare providers and government programmes, including the US Department of Veterans Affairs' electronic health record modernisation initiative.

The cuts have prompted questions from healthcare stakeholders and lawmakers regarding the division's ability to maintain ongoing projects and contractual obligations.

Questions raised over WARN Act and visa filings

The restructuring has also generated scrutiny over Oracle's use of the federal Worker Adjustment and Retraining Notification (WARN) Act process.

According to the report, affected employees received 60 days of paid administrative leave before their official termination dates, allowing Oracle to satisfy federal notice requirements.

However, some workers questioned the inclusion of the WARN notice period within severance calculations rather than as an additional payment.

Separately, the layoffs have coincided with continued H-1B visa activity. Tech Times reported that Oracle filed approximately 3,126 H-1B petitions across fiscal years 2025 and 2026, including 436 filings during fiscal 2026.

The overlap between workforce reductions and ongoing visa applications has attracted attention from some lawmakers and labour market observers.

Restructuring nears completion

With the final wave of departures scheduled through mid-June, Oracle is nearing the end of a workforce reduction that has reshaped several business units across the company.

The restructuring reflects a broader shift across the technology industry, where major firms are directing capital towards AI infrastructure, cloud capacity and data centre expansion. For Oracle, the success of that strategy will be measured by whether its growing AI and cloud businesses can sustain the returns expected from one of the company's most significant investment cycles to date.