A former employee of Oracle has alleged that the tech company is specifically targeting workers with unpaid stock options in its recent layoffs. Reports indicate that Oracle has offered a substantial stock package worth $26 million to its new chief financial officer.
This former employee, who spent three decades at Oracle, has now shifted to LinkedIn as the company lays off around 700 employees and anticipates further cuts, potentially affecting thousands more.
“Today, I joined the ranks of about 30,000 people let go after more than 30 years at Oracle. It’s quite a shock. Many of my incredibly talented colleagues were also released,” she noted.
“It seems like the layoffs might be following some kind of algorithm that targets high-level contributors and mid-level managers, especially those with significant stock options,” she added cautiously.
“I’m kind of at a loss for what to do next. I’m open to any suggestions,” she concluded, sharing her thoughts with a smiley emoji.
Employees who are terminated immediately lose their unvested shares, though they can keep their vested options.
Oracle has chosen not to provide any comments on the matter.
In a follow-up, the former employee mentioned that while she doesn’t have intimate details about the supposed firing algorithm, the rumors among workers align with what they’re observing as patterns.
“If you’re letting go of 30,000 people, wouldn’t there have to be some system or method behind it?” she wondered further.
Others who were let go echoed these suspicions on platforms like Blind and TheLayoff.com, with some stating that they were fired just before their stock options would vest.
Michael Shepherd, a senior manager at Oracle, commented on LinkedIn that the layoff decisions “aren’t based on performance.” He expressed his frustration, highlighting that many talented and essential staff members were lost, reminding that it was not performance-related.
Recently, Oracle disclosed its first round of layoffs, signaling that 700 employees would be affected by June 1. According to state records, positions will be cut in locations including Redwood City, Santa Clara, Pleasanton, and Santa Monica.
Earlier this year, analysts at TD Cowen speculated that Oracle could downsize by up to 30,000 employees and offload some assets to fund AI infrastructure projects, freeing up between $8 billion and $10 billion in cash flow.
These layoffs follow Oracle’s filing of over 3,100 petitions to hire H-1B workers for fiscal years 2025 and 2026, igniting additional unrest.
Earlier this month, Hilary Maxson was appointed as Oracle’s new CFO, with a compensation package that includes an annual salary of $950,000 plus the aforementioned $26 million in stock.
Maxson, previously the finance director at Schneider Electric, is Oracle’s first CFO since 2014 when Safra Catz took on combined roles as CEO and principal financial officer.
Oracle’s quarterly report showed a remarkable 95% rise in net income to $6.13 billion, largely driven by significant investments in AI infrastructure, with a planned capital expenditure of $50 billion for the current fiscal year, compounded by over $100 billion in debt for construction financing.
The publication has reached out to the former employee for further comment.
