Oracle carried out another round of layoffs in September, following the same 6am playbook as in March and affecting hundreds of workers. Now an internal document has revealed exactly what those workers will receive in terms of severance pay, treatment of unvested stock, and the fate of outstanding bonuses.
The document, as reviewed by Business Insider, confirms that Oracle provides a minimum of four weeks of base pay, with one additional week added for each completed year of service, subject to a maximum of 26 weeks.
That means an employee with one completed year of service would receive five weeks of base pay, while someone with 10 years would receive 14 weeks. A 20-year employee would receive 24 weeks, while workers reaching the 26-week ceiling would receive the equivalent of six months of base salary.
What Happens to Oracle Stock and Bonuses?
The internal Oracle FAQ also addresses compensation beyond base salary. Affected employees forfeit unvested stock following termination. The terms also address future corporate bonus payments and participation in Oracle's employee stock purchase plan.
The treatment of other compensation, including commissions, vacation and sick pay, is also covered in the company's separation information.
For workers who receive a substantial portion of their compensation through equity or annual incentives, those provisions can be as significant as the severance payment itself.
Oracle's severance formula therefore does not simply determine how many weeks of salary an employee receives. The terms also determine which future forms of compensation end when employment ends.
How to Calculate Oracle's Severance
For an employee trying to calculate the base severance payment, the formula is relatively straightforward. A worker receives four weeks of base pay plus one additional week for each completed year of service, subject to the 26-week maximum.
That produces the following examples:
- 1 year: 5 weeks of base pay
- 5 years: 9 weeks
- 10 years: 14 weeks
- 15 years: 19 weeks
- 20 years: 24 weeks
- 22 years or more: 26 weeks maximum
For a worker earning $150,000 annually, the maximum 26-week severance would represent approximately $75,000 in base salary before taxes. A worker earning $100,000 annually would receive approximately $50,000 at the 26-week maximum.
But the final financial impact of a layoff can be considerably larger or smaller depending on what happens to equity, bonuses, commissions and other benefits.
Oracle's internal documentation is therefore significant because it provides affected workers with a clearer picture of what happens not only to their salary but also to compensation that has not yet been paid or vested.
Oracle has not publicly issued a detailed statement explaining the severance structure or responded to comparisons with packages offered by other technology companies.
Oracle's Severance Compares Vs Other Tech Companies
Oracle's maximum of 26 weeks can be compared with severance packages reported at other major technology companies.
Microsoft has reportedly offered some laid-off employees as much as 39 weeks of base salary, while Salesforce has disclosed packages reaching up to 30 weeks for some employees.
Oracle's reported maximum is 13 weeks shorter than Microsoft's reported 39-week ceiling.
Actual severance, however, depends on each company's eligibility rules, tenure requirements, employment location and individual compensation structure. Packages offered to executives or employees under separate contractual arrangements can also differ.
Oracle Cut Roughly 21,000 Jobs During Fiscal 2026
The latest terminations come after a major reduction in Oracle's workforce during its 2026 fiscal year.
Oracle's global headcount fell by roughly 21,000 employees, or about 13%, during fiscal 2026, according to Business Insider reporting based on the company's workforce figures.
The reduction came as Oracle increased its spending on cloud infrastructure and positioned itself for rapidly growing demand from artificial intelligence companies and other large customers.
Oracle has not publicly disclosed the total number of employees affected by the latest September round.
The company has also incurred substantial restructuring and exit costs. Oracle has projected approximately $2.8 billion in restructuring-related costs, a figure that includes severance, lease terminations and other expenses associated with its restructuring programme.
The $2.8 billion figure should not be treated as a workforce-only expense. It covers a broader range of restructuring and exit costs.
