Tech giant Oracle started laying off employees on a large scale without any prior warning on September 14. After the layoff of 3,000 to 4,000 employees in America, now the sword of job loss is hanging over the people working in India and Europe.

The company has also shown the way out to old employees who have got better performance ratings and have been working for years. The increasing expenditure on Artificial Intelligence (AI) and the restructuring budget of about Rs 23 thousand crores are believed to be the main reasons for this big layoff.

Access closed at 4 in the morning, dismissal mail came at 6 o'clock

The layoff process at Oracle was very drastic and sudden. The people who have been fired were not directly called or messaged by any manager, rather they came to know in this manner. At 4:00 in the morning, staff stopped logging into the company's system. 5:00 am to 5:30 am: Staff started logging out automatically from Slack, the office chat app.

Even the access cards of people who reached the office gate stopped working. Then later at 6:00 in the morning, I received an email from 'Oracle Leadership', in which it was written, 'Due to some major changes taking place in the company, you are being fired and today is your last day.'

Even performance rating could not save the job

According to feedback from employees on social media platform Reddit, this time the basis for layoff was not poor performance at all. This is because the senior engineer who had been working in the company for 24 years was also fired. A staff member of the HR technology team received the mail despite consistently receiving excellent ratings.

Key teams like Oracle Cloud, NetSuite, Data Center, Customer Success and Oracle Health have been most impacted.

Now India's turn

The company shut down the systems of many people even before their personal email addresses were updated. Due to this, people are facing difficulties in getting documents for compensation. After America, now 3,000 to 4,000 jobs in India Development Center (IDC) are expected to be affected. About 30% of the staff can be reduced from the customer support team.

The laid off staff in India are expected to be compensated under the N+2 formula like in the previous round, although their unvested shares will be cancelled.

Pressure on the company's financial position

The company has not officially commented on this, but from several recently filed documents it is clear that Oracle is rapidly increasing its budget on AI and data center infrastructure.

Capital expenditure has increased to $28.5 billion, due to which free cash flow has gone negative. To balance expenses and adopt AI, the company is reducing the number of its existing employees. The company has already laid off more than 21,000 employees in the last one year.