Oracle, a global software and cloud computing company with extensive operations in Nairobi, has begun a new round of layoffs, affecting some employees who lost system access before receiving formal notification. The layoffs are part of a broader organisational change, with termination emails informing staff that their roles were being eliminated. The emails, signed "Oracle Leadership," stated that the final working day was the same day the message was received.
The layoff process was abrupt for some workers, with federated logins stopping working before any formal communication arrived, followed by disconnections from Slack, leaving employees locked out of company systems with no immediate explanation. An internal FAQ document outlines the full financial terms for departing employees, including severance pay, stock options, and bonuses. The document details what departing staff will receive, including four weeks of base salary for their first year of service, plus one additional week for each subsequent year worked.
The severance package is capped at 26 weeks of base salary, disbursed roughly three weeks after employees sign their severance agreement and return company property. Beyond severance pay, the document confirms that all unvested stock options and restricted stock units are cancelled upon termination. Employees generally have up to three months after leaving to exercise any vested options, though some options tied to acquired companies carry a shorter one-month window.
Participation in Oracle's Employee Stock Purchase Plan ends on the termination date, with contributions from the current offering period refunded without interest in the final pay cheque. On bonuses, employees on sales or consulting plans may still receive any bonus already earned, but those on corporate bonus plans forfeit eligibility for future corporate bonus payouts. Commission earnings also stop on the last working day, though commissions already accrued remain payable under the applicable compensation plan.
The layoffs arrive as Oracle continues to invest aggressively in AI infrastructure, having shed 21,000 employees, representing 13% of its workforce, during the fiscal year that ended May 31, 2026. Chief Financial Officer Hilary Maxson, speaking at an employee town hall in September, told staff the company needed to be "thoughtful" about where it directs its time and money. Oracle has not disclosed how many employees have been affected by the current round of cuts and the locations across its global workforce.
Oracle's severance package has drawn comparisons to more generous offers from rival tech firms. The company's decision to lay off employees has raised questions about its future plans and strategy. As one of the world's largest software and cloud computing companies, Oracle's moves are closely watched by industry analysts and employees.
The layoffs are a significant development in the tech industry, which has seen significant job cuts in recent months. Oracle's operations in Nairobi are significant, and the layoffs are likely to have an impact on the local economy. The company's decision to invest in AI infrastructure suggests that it is positioning itself for future growth, but the layoffs are a reminder that this growth may come at a cost to some employees.
Key points
- Oracle's severance package is capped at 26 weeks of base salary.
- The company has shed 21,000 employees, representing 13% of its workforce, during the fiscal year that ended May 31, 2026.
- Oracle continues to invest aggressively in AI infrastructure despite the layoffs.
