Laid-off Oracle Workers Attempt to Negotiate Better Severance

Introduction to Oracle Layoffs

In a move that was widely reported, Oracle laid off an estimated 20,000 to 30,000 employees via email on March 31. The experience left many feeling shocked and uncertain about their future. One former employee described the moment they found out: “I had, like, this weird feeling in my stomach. I went to go sign into the VPN, and the VPN was like, ‘this user doesn’t exist anymore.’ Then I called my friend, and I was like, ‘Hey, can you see me in Slack?’ And she said, ‘No, your account’s been deactivated.’”

Severance Offer and Controversy

A few days after the layoff, employees received a severance offer from Oracle. However, the terms were not as favorable as some had hoped. In exchange for signing a release waiving their right to sue, employees received four weeks of pay for the first year, plus one additional week per year of service, capped at 26 weeks. The company also offered to pay for one month of COBRA insurance. The main point of contention was that Oracle did not accelerate soon-to-vest RSUs, meaning any shares that hadn’t vested by the termination date were forfeited.

Impact on Employees

This decision had a significant impact on employees, particularly those who had a large portion of their compensation tied to stock. One long-tenured employee lost $1 million in stock that was just four months from vesting, with RSUs making up about 70% of his compensation. The situation was further complicated by the fact that some employees were classified as remote workers, which meant they did not qualify for WARN Act protections.

WARN Act Protections

The WARN Act is a law that requires companies conducting mass layoffs to give employees two months’ notice prior to letting them go. However, by classifying employees as remote workers, Oracle was able to sidestep this requirement. Even if employees were covered by the WARN Act, this did not necessarily extend severance, as Oracle included the two months’ WARN notice pay in its existing calculation of four weeks, plus one week per year.

Employee Negotiations

A group of at least 90 employees attempted to negotiate with Oracle, urging the company to match the terms of other big tech companies conducting mass layoffs. They pointed to companies like Meta, Microsoft, and Cloudflare, which offered more generous severance packages. For example, Meta’s severance package included 16 weeks of base pay, plus two weeks for every year of employment, and covered COBRA for 18 months. Microsoft provided accelerated stock vesting, a minimum of eight weeks’ pay, and an additional one to two weeks for every six months of service, depending on rank.

Oracle's Response

Despite the efforts of the employees, Oracle declined to negotiate, offering a take-it-or-leave scenario. The company declined to comment on its severance terms, classifying employees as remote workers, and the failed attempt by employees to negotiate more.

Conclusion

The situation highlights the limited protections in place for tech workers when it comes to layoffs. While they may enjoy high pay and perks during good times, they are often left with few options when the market turns. As the tech industry continues to evolve, it will be important for companies to consider the impact of their decisions on employees and to provide fair and reasonable support during difficult times.