They cost a bunch right away with severance and other related stuff, and then they hire new people who might be cheaper but are less productive and sometimes need two new employees to cover what one person used to do. How does that somehow equate to savings?
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Actually, Oracle is pretty stingy with raises over the years so if you've been working at Oracle for a long time and even made it to IC5, you can return to Oracle as an IC3 and get paid more than you were getting before, including a nice RSU package. So, they aren't hiring cheaper labor at all. IC3 tops out at $178k, IC4 tops out at $223k (starting negotations are about $195-196k), IC5 tops out at $250k.
What difference does the reasoning make? They are going to do it and you could be impacted. It is really that simple. If they wanted anyone's input they already asked for it. Instead of wasting time asking why spend your time planning your next moves.
@av they were being honest. Executives of every publicly traded company have a fiduciary duty to maximize shareholder value. That is their imperative. The rest of the mission is made up to make people feel good.
It moves the stock price and that’s all they really care about.
Years ago at a different company we had a mass layoff. The CEO actually said “ we are doing this to maximize shareholder value.”
@OP the new hire costs also make the cheaper wage employees more expensive than what they had.
They don’t. It’s for the investment community.