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

In a significant move, Oracle has recently executed a major workforce reduction that affects approximately 12,000 employees in India. This mass layoff, which occurred alongside global cuts, marks one of the largest reductions in the technology sector in recent memory. The affected employees received an email early in the morning on March 31, informing them that their roles had been eliminated as part of a broader organizational restructuring. Amid this turmoil, many impacted workers have taken to social media platforms, particularly Reddit, to share their experiences and discuss the severance packages being offered. According to various reports and user posts, Oracle's severance pay for its Indian workforce is determined by several factors, including tenure and base salary, as well as additional ex gratia payments. A detailed account shared by a Reddit user highlights the severance calculation at Oracle's India Development Centre in Bengaluru. Employees are reportedly entitled to 15 days of base salary for each year of service, along with encashment for unused leave. Furthermore, the severance package includes an ex gratia payment equivalent to an additional 15 days' salary for each year served, plus a fixed amount of two months' salary. In addition, affected employees will receive one month of salary as “gardening leave,” which compensates them during the notice period without requiring them to work. They will also be provided with Rs. 20,000 for insurance purposes. If the details shared by employees are accurate, the overall payout for impacted Indian staff could total roughly three months and 15 days of salary, including leave encashment and benefits linked to their tenure. In contrast, severance arrangements for Oracle employees in the United States appear to differ. Reports indicate that U.S. employees will receive four weeks of base salary for the first year of service, with an additional week for each subsequent year, capped at a maximum of 26 weeks, or about six months’ pay. This disparity in severance packages across regions highlights the varied approaches companies take in managing workforce reductions.