Oracle has started another round of layoffs in the US, with affected employees being offered a severance package of four weeks of base salary plus one additional week for every year worked at the company.
The latest cuts come as Oracle continues to invest heavily in artificial intelligence infrastructure while attempting to control payroll and other costs.
How Oracle’s Severance Package Works
According to documents reviewed in connection with the latest layoffs, affected US employees will receive four weeks of base salary, followed by an additional week for each year of service.
Oracle’s latest documents reportedly do not specify a maximum payout. However, the company’s previously reported standard severance policy capped the total at 26 weeks of base salary.
Under that policy, the calculation is based on the employee’s most recent date of joining Oracle.
For example, an employee with five years of service would receive eight weeks of base salary under the formula, while someone with 15 years would reach the reported 26-week maximum.
Layoffs Came With Immediate Termination
Employees affected by the latest round reportedly received termination emails informing them that their roles had been eliminated as part of a broader organisational change.
The emails stated that the same day would be their last working day. Some employees also reported losing access to company systems, including Slack and internal accounts, before or around the time they received the formal notification.
Oracle has not publicly disclosed the total number of employees affected by this latest round.
AI Spending Behind Workforce Restructuring
The layoffs come at a time when Oracle is committing enormous amounts of money to AI and data-centre infrastructure.
The company is expanding computing capacity to meet demand for AI services, but the infrastructure push is also increasing its financial requirements. Oracle’s workforce had already fallen substantially during the financial year ended May 31, 2026.
The latest restructuring therefore reflects a broader effort to manage costs while redirecting resources towards cloud computing and AI infrastructure.
How Oracle Compares With Other Tech Companies
Oracle’s reported severance terms are more limited than some packages offered during recent layoffs at other major technology companies.
Salesforce’s standard plan has provided up to 30 weeks of severance, while Microsoft’s latest layoff packages offered some employees up to 39 weeks of base pay.
For Oracle employees, the severance period could therefore vary considerably depending on their tenure, while the previously reported 26-week ceiling limits the maximum payout under the standard plan.
Summary
Oracle’s latest US layoffs come with a reported severance package of four weeks of base salary plus one week for every year of service. Earlier Oracle policy documents capped the total at 26 weeks. The cuts come as Oracle reduces payroll while committing billions of dollars to AI and data-centre infrastructure.
