MH is winding down Oracle operations globally! Now we have confirmation.

Lots of rumors are now circulating on a 10% RIF this summer followed by a major restructuring plan for FY20 to take Oracle to sub 100,000 employees Globally. The rumors are triangulated in ways not seen before. Business partners have been asked to step up because of a 10% RIF this summer, and now we have a direct announcement below from the Oracle head of human resources in Asia-Pacific that Oracle is indeed planning to wind down operations globally (Read Article Linked Below). If all the rumors are correct between 30,000 to 35,000 employees are slated to go in FY20. The first major round (10% RIF) is rumored to occur the week before the Q4 earnings call.

We know that no raises have been given since MH joined the company, cut backs and layoffs have been taking place during good sales cycles. Now after years of this kind of leadership things are not so bright at Oracle. After a decade with little to investment in people, and no real direction to inspire innovative technology, the direct result is Oracle's sales are flatlining. MH has a plan to reduce headcount to match the reduction in revenue.

Rumor is the Q4 earnings call is all about a new pivot to the cloud. Oracle will win the cloud war through software as Oracle is a software company, and it will take time to migrate the large customer base to the Oracle cloud. MH recognizes that Oracle has failed to deliver a proven cloud technology and places the blame squarely on outdated Oracle employees. New people will have to be hired, and the old ones have to be let go. Old technical products with no cloud road map will be put in maintenance mode and those people not absolutely critical for maintenance will be given walking papers.

What gives credence to these rumors is the latest layoff in China where Oracle is shuttering its entire Research and Development Center in China (CDC).

The big quote to pay attention to is the following statement. Its not just China, the head of HR Asia-Pacific said it was told by US Headquarters that the shutdown is global and announced this in the news:

"... the company’s head of human resources for the Asia-Pacific region announced that per orders from the U.S. headquarters, Oracle was planning to make some major changes to optimize its business structure, which would inevitably result in huge multi-phase staff reductions globally..."

The cat is out of the bag, and the rumor may have been inadvertently confirmed by the head of the Asia-Pacific HR. Read below for full context (links provided at the end)

U.S. computer technology giant Oracle is shuttering its entire Research and Development Center in China (CDC). More than 900 employees have been laid off, and the second round of job cuts is expected to happen in July.

According to several Chinese media reports, the layoff notice was made in an all-hands meeting on Tuesday. In the meeting, the company’s head of human resources for the Asia-Pacific region announced that per orders from the U.S. headquarters, Oracle was planning to make some major changes to optimize its business structure, which would inevitably result in huge multi-phase staff reductions globally. Following the brief statement were private layoff conversations inside the Beijing branch of the center, where about 500 employees were informed of their loss of jobs.

Guangzhou-based 21st Century Business Herald reported (in Chinese) that rumors about potential layoffs had started floating around since the end of last year, when CDC stopped hiring new people. The employees affected by the first round of layoffs were told to sign their releases before May 22 to claim full severance packages. After the complete closure of CDC’s Beijing office, Oracle’s employees in Nanjing, Dalian, and Shenzhen are on the line to lose their jobs. By slashing its entire staff of CDC, Oracle is planning to cut over 1,600 jobs in China.

https://www.zdnet.com/article/oracle-said-to-close-chinas-r-d-center-axing-nearly-1000-employees/

https://supchina.com/2019/05/09/oracle-to-lay-off-1600-staff-in-china/

MH does not see the loss of employees as a problem. Infact he sees Oracle's current employees as THE problem at Oracle.

https://www.businessinsider.com/oracle-ceo-mark-hurd-on-when-employees-quit-2019-5

I believe MH is right, but its 3 employees at the very top that are the problem, they need to go.

Comment! It's anonymous!

18 replies (most recent on top)

"Chinese media article"

LoL to taking the Chinese media as doggone fact. And let's not even mention your google chinese translation.

I have a bridge to sell you...

But, yeah, so let's move End of World from May to sometime in Summer.

An interresting info posted by @YHHWUKV-2yck

nothing has changed since the original plan decided in dec last year,

soon after Q2 cloud results. slightly less than 2000 ppl worlwide

(mainly US, India and China) in dev and non-sales orgs by end of FY

(almost done, don't expect any new major layoffs until next FY).

around 4000 ppl worlwide in all orgs, but mainly support and sales, by

end of Q2FY20.

the cloud results of Q2FY20 will determine if/when the next round will

be.

the approved plan ending Q2FY20 is for less than 5% of total

workforce, I understand affected ppl are important even if only few,

but from an outside pov ths is just a smal hair-triming.

much more important will be the shakeoff of some important names, that

will happen in the close future. that will give a clear indication to

the market, and it is one of the reason why stocks are goinf steadily

up.

According to the introduction of the above-mentioned person in charge, the company is in an extremely fast-changing IT industry, and layoffs will be global.

Maybe it was initials: AS

Title: Senior Vice President of Human Resources at Oracle Corporation, Asia Pacific & Japan

"According to Oracle HR:"

LoL. Please link to the article containing the name of said HR person.

Article Link:

https://m.21jingji.com/article/20190507/herald/a342c64ad7e019e64092bcb71ad813b5.html

(Google translate to English)

Oracle’s head of human resources for the Asia-Pacific region:

(Initials are RS, we are not allowed to post names)

Title: Vice President Human Resources, Oracle Corporation Asia Pacific & Japan at Oracle

So May is not end-of-world. Sometime in summer is now?

Do your own research, you have the links. You have the titles, you have google and linked in. I can't help people in complete denial. But I will paste some of the google translation of the Chinese article. We don't know, other than July was mentioned for part of the layoffs, and that its global and multi-phased.

The head of human resources in the Asia-Pacific region briefly introduced at the meeting that the company is undergoing business restructuring, which will lead some people to leave the post. This will be global.

...

In fact, the CDC will be closed down as an internal consensus, and the second batch will probably take place in July.

...

After talking to employees in Beijing in the past two days, HR will then travel to Nanjing, Dalian, Shenzhen and other places to conduct one-on-one talks with CDC employees.

For some CDC employees, the sudden announcement of layoffs may be completely unexpected, because in the last few days, CDC employees have received R&D plans from US headquarters, but they are also listed in the first batch of layoffs. In the list.

The 21st Century Business Herald reporter learned that at present, the R&D center in China has not been laid off, and its business involves database products and middleware products, but the cloud computing related R&D personnel are also among the first batch of layoffs.

English Report With Link to Chinese Article:

https://supchina.com/2019/05/09/oracle-to-lay-off-1600-staff-in-china/

What is interesting is the Oracles VP of human resources for the Asia-Pacific region reported global massive layoffs as direct by headquarters. This is a first.

"According to Oracle HR:"

LoL. Please link to the article containing the name of said HR person.

So May is not end-of-world. Sometime in summer is now?

Wow dude, you are right... with out the Chinese media article that names the Asia-pacific head of HR this is all a total lie. Everyone is safe. The link below is just fake news.

https://supchina.com/2019/05/09/oracle-to-lay-off-1600-staff-in-china/

Keep living the dream dude, you are safe.

So what’s the impact to North America headcount, specifically Solution Engineering reporting to TH?

"According to Oracle HR:"

LoL. Please link to the article containing the name of said HR person.

So May is not end-of-world. Sometime in summer is now?

I guess posters can no longer complain that O keeps its layoff plans secret.

lol. so we are moving the the date to summer now? no longer May for end of the world?

According to Oracle HR:

"..Oracle is planning to make some major changes to optimize its business structure, which will inevitably result in huge multi-phase staff reductions globally.."

I assume "huge" means bigger than normal. I also assume "multi-phase staff reductions" means the layoffs occur in more than one "phase." I assume "globally..." means everywhere.

This means huge layoffs will occur globally in more than one phase. I believe its not a rumor when it comes from Oracle HR. Pretty sure the Asia-Pacific HR guy was not supposed to confirm this. Also pretty sure he did not care.

I suppose If you think you are safe, you can just sit back and relax... right? Just a bunch of rumors, right? Certainly this HR confirmation of "huge multi-phase staff reductions globally." Will have no impact on you or anyone else in these forums.

lol. so we are moving the the date to summer now? no longer May for end of the world?

I recall we "pivoted to cloud" about 4 years ago and tried to force customers off onprem. It was so unsuccessful that we gave cloud credits and started shady financial cover ups to pretend we had customers buying cloud. I don't see this approach being different, just rename the same old thing with a new marketing twist. We have no real cloud technology, data centers or architects (anymore), when DJ got rid of all the Oracle engineers and replaced them with the boys from some junior high science class - we now have nothing close to expertise or strategy for cloud. Customers have no confidence in what we market as cloud technology and we're not even considered a player in the top 10 cloud companies.

Apparently when they removed NA SaaS CSMs it really had zero fall out. The are now going to run this same lay off scenario for all of Customer Success functions across the company and globally.

"new pivot to the cloud" aka Oracle Cloud attempt 3.0 is a common theme in a lot of these rumors for end of FY Q4 earnings call. I know you get three strikes in baseball but not seeing any evidence that a 3.0 can successful.

This is not a pivot to the cloud; this is a going out of business layoff, covered up with a pack of lies to prop up the share price. Any investor stupid enough not to see through this deserves to lose their money when the stock finally goes to $5 per share where it belongs.

For Oracle to reinvent itself we need MH and SC to leave, like Steve Ballmer and Kevin Turner did at MSFT. And LE to step away from day to day duties and just be an advisor to the board, like Bill Gates did.

Do you see that happening?

I guess 2019 and 2020 will more or less determine if ORACLE is going to follow what happened to Sun Micro (that wasn't because of lack of vision, but sh--ty sales and marketing) or it will be reborn. My bet is that it wont be reborn, since the leaders are not willing to see anything beyond what they think is out there.

ORACLE has good products, at least in the JVM space and some other places the products are good, but nobody trust oracle not to k--l the products. e.g. Project FN, probably the best FaaS on the market in term of ease of use but we cannot get any customer to pick it up since nobody trust oracle not k--ling/cancelling it and leaving them to dry. Same goes for Graal, amazing engineering has gone into that project but luck having customers picking it up and paying for it.

MSFT made the transition from dont trust them, to be one of the trusted companies in enterprise space now. while ORACLE is going down and down when it comes to trust because of the constant flux and unpredictable, mostly toward negative, moves

The layoffs and its ripple effect is going to be more than 30k, 40k. Whoever they layoff and many who are going to leave because they cannot count on their employment or that they are p-ss-d at the fluxing strategies.

I really wish ORACLE follow the same path as MSFT and redefine itself, there are some exceptionally smart and bright people at oracle whom if given the chance can turn things around, but well my bet is that management are gonna screw this up.

Lol

... I believe MH is right, but its 3 employees at the very top that are the problem, they need to go.

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MH is winding down Oracle operations globally! Now we have confirmation.

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