Global organizational restructuring behind Oracle's layoffs

The upgrade to Oracle Cloud Infrastructure (OCI), i.e. Gen 2 Cloud is one of the big reasons for the organizational restructuring inside Oracle. 

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Oracle has fired 352 of its employees in California, who will finally leave on May 21, as per the company's recent filings with California Employment Development Department. Of the 352 employees, 97 are from Oracle's Santa Clara unit and 255 are from Oracle's Redwood City unit, according to the Worker Adjustment and Retraining Notification (WARN). 

Oracle has announced organizational restructuring for its 140,000 employees across the globe and this is the reason behind the layoffs. Media reports have also cited layoffs across multiple geographies including California, Seattle, New Hampshire, India and Mexico. 

"As our cloud business grows, we will continually balance our resources and restructure our development group to help ensure we have the right people delivering the best cloud products to our customers around the world," stated Oracle's spokesperson Deborah Hellinger. 

The layoffs are certainly not indicative of any financial woes. Oracle's 3rd quarter earning report as published on March 13 stated that the adjusted operating income increased by 2% to reach $4.3 billion, indicating very healthy financials.

In its letter to California's employment regulator, Oracle said it is reevaluating its product focus and skill set gaps, and for these reasons has decided to lay off certain employees in the product development organization. 

A major citation for the layoffs is the company's main focus to work on its new cloud offerings. The upgrade to Oracle Cloud Infrastructure (OCI), i.e. Gen 2 Cloud is one of the big reasons for the organizational restructuring inside Oracle. 

"Today’s changes within OCI will better align with Larry's vision of the business. It will streamline our products and services, focus investments on our most strategic priorities, and help us to more effectively and rapidly deliver the full promise and reach of Oracle's Gen 2 Cloud," said Don Johnson, executive vice president of Oracle in an internal email addressed to Oracle employees which has been posted to TheLayoff.com

The last major layoffs at Oracle happened in 2017 when the the company fired about 1000 employees in the Silicon Valley, mostly from its SPARC and Solaris teams.