Oracle's Restructuring and Job Cuts
Overview
Oracle has allocated an additional $700M for job cuts, bringing the total budget to approximately $2.8B. This increase covers anticipated actions, mostly severance packages. The company’s workforce includes roughly 92,000 employees outside the US, with significant operations in Europe where collective redundancies are subject to legal regulations.
Legal Considerations and Redundancy Processes
In the EU, Oracle must adhere to the Collective Redundancies Directive, which sets out specific procedures for implementing job cuts above certain thresholds. These include consulting worker representatives, notifying authorities in writing, and adhering to a 30-day standstill period before redundancies can take effect. A recent court ruling emphasized the importance of these steps, stating that invalid notifications cannot be remedied afterward.
Geographic Impact
While Oracle has a global workforce of 141,000, a substantial portion is based outside the US. Approximately 49,000 employees are American, while the remaining 92,000 are located in countries like Romania, where Oracle has cut around 500 jobs in June, following similar reductions in late 2025.
Funding and Future Plans
The additional funds will be allocated to data centers, supporting customers like OpenAI. Despite significant cash expenditure, S&P has lowered Oracle’s rating to BBB-, reflecting the company’s financial position. Larry Ellison, who owns a substantial stake, has implemented a trading plan allowing him to sell 50 million shares by October 24th.
Editor’s Note
As the Editor-in-Chief for TNW, I focus on technology as a force for influence and change, not solely through launches and valuations. My interest lies in exploring who shapes the future, who benefits from it, and how regions like Europe are asserting their voice in tech.