Oracle layoffs 2026: The severance formula offered to 12,000 Indian staff

Last week, Oracle laid off thousands of employees globally across roles and divisions. In India, nearly 12000 employees are reported to have been affected in the round, making it one of the largest workforce reductions in the tech sector in recent times. 

All impacted workers were reportedly let go after a 6 AM email on March 31 that said, “We have made the decision to eliminate your role as part of a broader organisational change. As a result, today is your last working day.”

While the company has not revealed the percentage or numbers for its workforce reduction, impacted employees have turned to social media to share their experience. Many also turned to Reddit to reveal Oracle’s severance pay plans for the impacted employees.

Oracle India’s severance pay explained

Post-Oracle layoff news took the internet by storm, and many employees also leveraged the subreddit r/employeesofOracle thread to share their experience, including what the Oracle severance package looks like in India. 

Based on media reports and Reddit posts, the severance pay is calculated based on factors like tenure, their base salary, and ex gratia. However, the package also requires employees to meet the terms and requirements to receive the full amount.

A Reddit user, u/Lavishness897, outlined a detailed account of the severance package offered at Oracle’s India Development Centre (IDC) in Bengaluru:

15 days of base salary is paid (likely per year of service), and unused leave is encashed
Ex gratia payment will include an extra 15 days’ salary per year of service and an additional fixed 2 months’ salary.
Employees will also get 1 month of “gardening leave” salary, which means employees will be paid for a notice period without working.

Lastly, employees will be getting Rs. 20,000 for insurance.

If the reported information is accurate, then Indian employees will get a total payout of around three months and 15 days, along with leave encashment and tenure-linked benefits. However, the final pay may vary based on roles and tenure in the company.

In comparison, Oracle’s severance pay for the US employees is slightly different. According to a Reddit post, employees will be getting 4 weeks of f base salary for the first year of service. For every additional year worked, they will receive 1 extra week of salary. However, the maximum limit is 26 weeks, which is about 6 months in total.