Oracle document spells out what laid-off workers get in severance, stock, and bonuses

Exclusive Oracle document spells out what laid-off workers get in severance, stock, and bonuses ...

September 18, 2026

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Oracle document spells out what laid-off workers get in severance, stock, and bonuses

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Ashley Stewart

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Oracle employees caught in the company's latest round of layoffs now know exactly what they'll leave behind and what they'll take with them.

An internal FAQ document viewed by Business Insider lays out more details for staff impacted, including severance capped at 26 weeks, canceled stock awards, lost bonuses, and deadlines for exercising vested options.

Oracle started notifying affected staff on Monday. Business Insider reported last month that the company had drawn up plans for double-digit percentage layoffs on some teams to reduce payroll as it racks up billions in debt to fund AI infrastructure.

Employees were offered four weeks' base salary plus one week per year of employment, according to documents viewed by Business Insider. The full FAQ document includes the maximum severance payout and what happens to employee bonuses, commissions, and stock options.

The details offer a window into the employee impact of Oracle's latest cost-cutting push. The company has shed tens of thousands of workers while borrowing heavily and spending tens of billions of dollars to build data centers and other infrastructure needed to support its AI ambitions. For employees leaving in the latest cuts, the financial impact extends beyond losing a paycheck: unvested stock disappears, future corporate bonuses are forfeited, and participation in employee stock programs ends.

Oracle executives didn't directly address the layoffs in an employee town hall this week, but Chief Financial Officer Hilary Maxson told staff the company needs to be "thoughtful" about where it spends tims and money.

"I don't mean doing more with less, which is a phrase that I really, really don't like," Maxson said. "It means simplifying processes that don't help customers and making clear choices on where we're going to use our resources where they have the greatest impact."

This latest round of layoffs follows cuts earlier this year. The company's workforce declined by 21,000, or 13%, in the 2026 fiscal year that ended May 31, according to a recent filing.

Oracle's severance package is comparatively less generous than those offered by other Big Tech companies over the past year.

Salesforce's standard policy offers up to 30 weeks of severance pay, with a minimum of 9 or 13 weeks based on role, plus an additional 3 weeks of service per year.

Microsoft offered employees in its latest round of layoffs this summer up to 39 weeks' base pay, with a minimum of 60 days and one or two additional weeks per six months of service, depending on seniority.

Severance

• Employees receive four weeks of base pay for their first year of service, plus one additional week of base pay for each additional year worked. Six months or more in the last year of employment will count as a full year.

• Total severance is capped at 26 weeks of base salary, paid out about three weeks after employees sign a severance agreement and return company property.
• Employees rehired within six months may have to repay a portion of their severance.

Employee Stock Purchase Plan

• Participation ends on the employee's termination date.
• Contributions made during the current offering period are generally refunded without interest in the employee's final paycheck.
• Employees who leave during specific purchase windows (Sept. 16—30 or March 16—31) will have their contributions used to purchase stock instead of receiving a refund.

Stock options

• All unvested stock options are canceled when employment ends.
• Employees generally have up to three months after termination to exercise vested options, subject to the original expiration date.
• Some options granted through acquired companies may have a shorter, one-month exercise window.

Restricted Stock Units

• All unvested RSUs are canceled upon termination.
• Previously vested RSUs remain the employee's property and stay in their Fidelity brokerage account.

Vacation and sick pay

• Accrued vacation is prorated through the employee's termination date and paid out according to company policy.
• Unused paid sick leave is not paid out at separation unless required by applicable law.

Bonuses

• Employees on sales or consulting bonus plans may receive any bonus earned under the terms of their compensation plan.
• Employees on corporate bonus plans are not eligible for future corporate bonus payouts after termination.

Commissions

• Employees stop earning commissions on their last day of employment.
• Commissions already earned but not yet paid remain payable under the terms of the applicable compensation plan.

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