Oracle just rebuffed negotiation of severance terms by ex-employees
What's the story
Oracle recently laid off 20,000-30,000 employees via email on March 31. The abrupt termination left many workers shocked and confused. One such employee described the experience as "a weird feeling in my stomach," after finding their VPN access revoked and Slack account deactivated. They later received an email confirming their immediate termination and a severance offer days later. However, the terms of Oracle's severance package are now being contested by some ex-employees.
Package details
Details of Oracle's severance package
Oracle's severance package is pretty standard for corporate America. It offers four weeks of pay for the first year, plus one additional week per year of service, capped at 26 weeks. The company also pays for one month of COBRA insurance. However, the package does not include accelerated vesting for soon-to-vest Restricted Stock Units (RSUs), which are a significant part of tech workers' compensation packages at Oracle.
Stock exclusion
Laid-off employees lost millions in unvested stock
The exclusion of unvested stock from the severance package has been a major point of contention among laid-off Oracle employees. Even retention or promotion-related stocks were not spared. One long-term employee reportedly lost $1 million worth of stock just four months away from vesting, with RSUs accounting for about 70% of his compensation.
Remote classification
Oracle also sidestepped WARN Act requirements
Oracle also classified some employees as remote workers, excluding them from WARN Act protections if they didn't work in states with stronger worker provisions such as California or New York. The WARN Act mandates companies to give two months' notice before mass layoffs when 50 or more people are affected at one location. By classifying employees as remote workers, Oracle could sidestep the minimum location requirements of this law.
Negotiation failure
Negotiation attempts by laid-off workers rejected by Oracle
A group of at least 90 employees even tried to negotiate with Oracle, asking the company to match severance terms offered by other tech giants. However, Oracle refused to negotiate and maintained a take-it-or-leave-it stance. The company did not comment on its severance terms or the failed negotiation attempt when approached for clarification by TechCrunch.