Thread regarding Oracle Corp. layoffs

Massive Reorg / Realignment in Sales and Sales Engineering starting this June

On premises and cloud business at Oracle will be split in two. New clearly defined organizations will be formed to support both. I spoke with a friend earlier this week who is a sales engineering manger at Oracle. He said he has heard of a massive reorganization and realignment in sales around cloud and on premises that is slated some time in June. I am assuming this will impact all organizations, not just sales.

Good news: He was told no mention of layoffs. Bad news: He assumes that there will be, as this is a good time for people to "slip through the cracks" during the massive transition.

Interestingly enough instead of the usual list that the GVPs ask for, the one that lists the bottom 3rd performers for layoff targets, he was asked for his top 2 or 3 performers tied to current deals in flight that will close in Q1 of FY20. He was also asked for revenue number tied to those people.

His take is that the Oracle Gold CEO partner rumor of a 5 to 10% haircut in North America this summer is likely true. The HR china admission of large mutli-phase global layoffs seems a strong possibility, even the sub 100,000 employee rumor may be possible. He thinks these are not just rumors, and not the typical rumors and layoffs that occur this time every year at Oracle. Oracle may be "reinventing itself" and shedding its old skin. That means a good chance of layoffs in the process as the old on premises skin has the most employees and lion share of support revenue. The cloud organization will be the sales hubs and mostly new hires for cloud.

He sees hope in cloud database, cloud software, cloud IAAS, and cloud apps. He thinks the on premise division is slated to be formed only to be culled to bare bones. In other words if you are not cloud, you will likely be on the side that gets cut. I am simply passing this information on. Multiple rumors supporting this have been posted here in the forums, and whispered in the hallways.

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| 4121 views | | 11 replies (last May 22, 2019) | Reply
Post ID: @OP+ZailU5f

11 replies (most recent on top)

Putting together an on-prem sales vertical at this time would make no sense. The products have been abandoned for years; most on-prem development was moved to India (which is where products go to die at Oracle). There's no making up for years and years of negligence; Dev teams in India do not innovate, they barely keep the lights on. Any sales rep trying to sell on-prem will face multiple challenges, from very basic stuff, like lack of support for newer browser versions, to modern requirements that did not exist when the product was released.

When I left Oracle, the plan was to have the inside sales teams (the "class of" teams) selling on-prem, while field sales teams would sell only Cloud.

Given that Oracle failed to secure a place among the big Cloud vendors, while spending the last years denying investment to on-prem products, which are now years behind where they should be, I'd say they're in a bit of a tough spot. Gladly I saw it coming and jumped ship before it happened...

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Post ID: @1pza+ZailU5f

This is true in APAC and such a risky move.

Good luck to this new team go-to-market strategy selling ADW and Chatbots.

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Post ID: @1feq+ZailU5f

When all is said and done, this sounds like a great rationale for the 3 stooges to march out on the year end earnings call to justify massive layoffs. The fly in the ointment is that oracle, as we all know, doesn’t have a cloud business because it has failed to keep up with the big boys who have invested tens of billions on cloud. The end result of this will therefore be potential massive layoffs and continued massive share buybacks to prop up EPS and the share price, while revenues continue to decline as customers dump oracle’s on-prem apps and DB for other companies cloud offerings. Oracle is being liquidated. Look no further than what the Turd did to once proud HP - he k--led it!

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Post ID: @1fab+ZailU5f

Maybe I'm wrong here, but isn't this an old news? In my region the new cloud and onprem sales teams have already been announced since more than 2 months now, and the respective managers have already been appointed (while people will move in the new orgs in june).

Presales teams have also been announced, but the managers line is still being worked out.

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Post ID: @1ikp+ZailU5f

This is a major leak

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Post ID: @1gxx+ZailU5f

Sounds legit

It also makes sense

I doubt we will turn into a cloud leader

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Post ID: @1qjl+ZailU5f

Oracle is not a cloud company and never will be. Oracle spent 5X more on stock buybacks than their entire 2018 R&D. Also they spend 27% of their net income on Dividends. They might be preparing for some divestitures and end up riding the legacy database as long as possible. They are probably under 100k employees already. SC will be leaving soon by the way.

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Post ID: @1ftc+ZailU5f

LOL in my office there are hardly any CPR's any more. They've already left Oracle on their own.

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Post ID: @1elm+ZailU5f

The first phase of this is the "Autonomous Cloud" sales reps, a new parallel sales team to the "Cloud Platform" sales reps in Tech. The Autonomous Cloud reps will focus on ADW and ATP and Universal Credits, while the Cloud Platform reps will focus on "everything else" including on-prem licence deals.

This starts on June 1st. Look at Oracle's careers site and you'll see they're hiring hundreds of Autonomous Cloud reps right now in every country.

Surely there is no way the company will continue to pay salaries of two sales people selling into the same customers. Cloud Platform reps should make sure their CV is updated.

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Post ID: @1gtk+ZailU5f

That seems to run counter to the rumor that there will be additional layoffs in OCI......

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Post ID: @1rlv+ZailU5f

F--- Oracle

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Post ID: @qrz+ZailU5f

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