Thread regarding Oracle Corp. layoffs

The Inside Scoop on the massive Oracle Reorg (Layoff) for Sales and SPARC/Solaris June 2017

The rumor mill has continued to flesh out the details of this summers reorganization. This post is a compilation of rumors that have been triangulated by more than one person in different divisions.

The new Alpha Sales representative is known as a “Platform Sales Rep” the new Sales Engineer is the ECA. The new platform sales rep is responsible for Database, Middle Ware and Cloud. He will be responsible for cloud security. Oracle Digital will handle on prem security. The ECA will be the Sales engineer. Goodbye field App rep, security rep, FMW rep, Database rep, CX and DX rep. Its now one platform field rep. If you haven’t got the new assignments by now, you are in trouble.

Over the past several years Oracle has been pruning its veteran field sales force. Keith Block has left as head of sales and Paul Cross has left as the head of sales engineering. They have been replaced by less original thinkers. Hamidou Dia, the SVP of the entire oracle pre-sales started out as a Fusion Middleware Pre-sales Director just a few years ago. Hapless Hamidou is a poor leader compared to Paul Cross. His lack of vision, or ability to provide any direction and his inability to speak in complete sentences has done little to help with the pivot to the cloud. Rumor has it he is getting the axe this summer as well.

Since 2011 Hurd has sounded the call for "More feet on the street." Mainly he is and has been hiring new fresh recruits to Oracle to replace the seasoned veterans. This is part and parcel of the cost cutting program. Hurd was brought in to help make the change. This change in sales people is seen as necessary by the board. Basically, trim the fat.

Lets look at the cuts to the sales team made since 2014:

In June of 2016, which was Q1 of Oracle's 2017 fiscal year, Oracle let go of its chanel partner sales group. A great chasm suddenly opened and over 350 sales reps sales engineers vanished in a mass layoff. One day they were here, and the next ... poof the whole cost center was gone. The reasoning behind this was to fine tune sales toward the cloud with out having to pay partners for any cloud sales. Prior to this, in 2015, the sales team monthly car allowance was also cut. The message was sent load and clear to the veteran field sales team. “Start looking for a job else where." No raises or increases have been offered since 2011.

To make things clearer (after the channel partner layoff) the bonus structure was changed in Q1 of 2017 so that all bonuses are based on cloud sales. This is a direct pay cut, as in Q1 2016 over 95% of Oracle’s revenue is bases on on premises sales.

This June 2017, a massive reorganization of the entire oracle sales team will take place. This is the day of reckoning, where the Hurd vision of sales “whipping into shape” is fully recognized. The basic question for the veteran on premises sales team is “why are you still here?”

The Fiscal Year 2018 kick off meeting for the sales team has been canceled for two reasons. The first and most logical reason is that most of the people that they would fly to the kick off are going to be laid off. It makes no sense to spend money on travel expenses for people that are already slated for termination and release the following week. The second reason is the executives are going to try out the “remote” sales model. Hurd comes from HP and he is used to selling hardware. “How many cores do you need?” is the only sales question he thinks needs to be asked. He does not value the face to face meetings. The executive team is blissfully unaware of the 5 to 8 Cloud Sales Engineers at the customer site every day from AWS and Google.

The biggest catch so far, the thing that has Hurd scratching his head is that the one massive cloud deal that was closed by Oracle with AT&T was due to the effort of the old veteran pre-sales team. The database pillar pre-sales engineer completed a successful customer proof of concept leading to a sale of the Exadata cloud machine. She also proved out the capabilities of the Oracle cloud. For Oracle, the only appeal of the Oracle cloud to its customers is its flag ship product, the Oracle database. Mission critical applications with a large database foot print running on Oracle RAC or Exadata offer a tech drag, pulling those applications into the Oracle cloud. The question is will the Executives recognize this before they reduce (replace) the head count in the data platform pillar? She is safe for the time being.

The executives currently plan eliminations across the board in sales and pre-sales for all employees who have not tied themselves to a successful cloud deal. Its not a cut to the sales team head count as a total. Its a cut to the salary of the sales team. Its a shift from field sales head count to an Oracle Digital head count.

The sales reporting tools determine your survival at Oracle. Within days after the close of Q4, the reports will determine who stays and who is let go. The only exception is deals still in flight with attached cloud proof of concepts (POCs). The sales team assigned to these POCs will be allowed to stay on until the POC is completed. Walking papers will follow on the heels of the POC. You should have closed it in Q4 2016!

The message to the Sales team is “Sell cloud, the field sales jobs go to the closers.”

Here is who gets laid off in order of least importance to the company, pardon the group names. The politically incorrect group names are meant to give you an executive view of why they are being terminated:

Group 1 (Leeches). Sun hardware sales reps, sun hardware sales consultants (not selling sparc cloud), Sun SPARC developers not working on Sparc cloud. In the words of Keith Block, “Sun is Dead, Dead, Dead.” If you work on SPARC or Solaris so are you. Your number is up this summer. This is one of the cost centers likely to be dropped as a whole. The second most likey... hardware sales. We don’t need hardware sales on premises when we need that hardware rented in the cloud. CX and DX, customer experience and digital experience, pack your bags you are done.

Group 2 (Dinosaurs). Any pillar Sales rep or pillar pre-Sales engineer not selling deals totaling at least $150,000 USD is toast. If you have not closed at least 150k you have not begun to cover your salary. Your Oracle Digital replacement has already been hired. If your an Apps Rep or even worse a middle-ware rep or pre-sales with no cloud, you are as good as gone. Thomas Kurian is being blamed for the whole middle-ware fiasco that has never had a good track record in sales, but cost a huge sum in development. Rumor has it his days may be numbered. A ton of money was sunk in fusion middle-ware. Say your prayer’s you are done. The new bare-metal IAAS was designed outside of Thomas Kurian’s organization.

Group 3 (Retards). Any ECA that has not personally closed (and can claim credit) for a cloud deal. Any ECA who has not completed the certification and review board is also going to be reassigned to the “special projects cost center” and told to look for employment elsewhere and inside the company.

The new layoff method entails a mandatory 15 minute phone call with your (new) manager followed by a courtesy a fedex delivered to your home with instructions on how to turn in your laptop. The fedex also has papers to sign in order to receive any sort of severance it must be returned on the same day. In some cases the whole cost center is just removed along with all the managers and employees under it. No point in a face to face meeting as this might require travel. No point in a travel expense when you are just an expense to be eliminated.

Again the vast majority will have been shifted by hire and replace to Oracle Digital. Its not a cut. Its a “hire and replace,” a cut is when you don’t hire replacements.

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Post ID: @OP+NkiQdKE

38 replies (most recent on top)

I meant June 1

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Post ID: @juvu+NkiQdKE

Well turns out the layoffs, er I mean re-org, started on queue on July 1 and are continuing this week in drip drip drip fashion. No question, it was not fake news.

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Post ID: @jvmo+NkiQdKE

Time will tell. June 1 is looming large.

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Post ID: @buob+NkiQdKE

Working on a big deal, and a sales engineer just now got a mandatory 30 minute phone call scheduled with his manager June 1st 2017. This is stupid. Its not productive. Anyone else getting these meetings scheduled?

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Post ID: @5llb+NkiQdKE

Sounds plausible. Stay vigilant, keep your resume updated and always be interviewing. The truth will be out on 1 June. Good luck everyone!

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Post ID: @5huz+NkiQdKE

No kidding why would anyone on their right mind buy oracle

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Post ID: @3fys+NkiQdKE

It would be funny watching the 3 stooges plus TLK stumble around in a world that they clearly do not understand, except that it impacts the lives of lots of employees, which these idiots take non responsibility for

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Post ID: @2lix+NkiQdKE

they are betting the farm on the "OCM" (Oracle Cloud Machine) which is fancy-talk for "on prem private cloud servers 'managed' remotely by Oracle." Not sure who will "manage" these virtual private cloud "boxes" at oracle offices...its still in the "TBD by mgmt and they'll let you know when they are darn good and ready" black hole). Need to know required. LOL. Its LE's panacea vision for "clients leasing our hardware every month..." Just wait till he figures out he has to upgrade his on prem cloud boxes. Enter the IaaS and PaaS offerings similarly packaged. Then don't forget the "bare metal" offering... ????

Let's not forget that there is a total disconnect between the leadership (TK, LE, MH, SC) and the new kids on the block over in "public cloud" products like marketing cloud, commerce cloud, social cloud and data cloud. Oracle Social's early dismantling of their sales force last year was an early indicator of how little management understands the "public cloud product" arena and what it takes to survive and thrive. Zero innovation after acquisition which leads to dismal sales b/c of highly competitive atmosphere leads to death of a product and layoffs. Oracle did the same thing to Sun in the pre-cloud era. Oracle just lives on the legacy of the clients "acquired" in each product or category acquisition. Once these legacy clients finally get enough and determine its not going to get better and that its not just the bumpy time after the acquisition they cut ties and cancel.

No matter how good your sales team is, it does not matter if your products are stagnant, lacking innovation. There are many other options in the marketplace that are more up to date and innovative and a better price. Don't say they can't scale...they can. The old fear mongering that Oracle is the only outfit who can build scalable enterprise solutions is pure folly. People do get fired for buying Oracle.

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Post ID: @2xtt+NkiQdKE

How do we know any of this is true? Can you give us a hint by providing the cost center you report into and your director's initials. Then we can verify the authenticity of this 'news'.

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Post ID: @2ojl+NkiQdKE

My guess is that all oracle cloud revenue, other than NS, is repurposed support $s. I.e. No net new sales and no new cash.

Is it misleading not to reported that to shareholders?

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Post ID: @2hgi+NkiQdKE

How TK has survived after whiffing on every tech trend for the last 15 years while simultaneously destroying the development organization has astounded me. The on prem business, which still accounts for the bulk of revenue, has cratered due to negligence. This is Oracle's only market to sell Cloud to. Most of these customers will have sworn off buying anything from oracle ever again. The Saas, Paas and Iaas offerings are light years behind the competition. I would wager that 80% of existing cloud revenue is financial engineering of packaging cloud credits into the last remnants of existing business they have.

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Post ID: @2adl+NkiQdKE

He take beating from MH and turn around and make sales people fill in useless forms in Q4 - he do do a lot, just nothing iseful

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Post ID: @2oqk+NkiQdKE

RG do do a lot, he use big words like linearity ( too big for his walnut sized brain), he say "we need to live up to our commitments" and then miss his targets, he sick up a lot. Busy guy

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Post ID: @2cgz+NkiQdKE

And then there is MH's little buddy/ whipping boy RG who had helped MH f- up HP: what does he do that's utterly useless git?

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Post ID: @2zwy+NkiQdKE

Do you want to make it to $10 Billion in cloud revenues?

Because this is not how you make it to $10 Billion in cloud revenues.

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Post ID: @2akq+NkiQdKE

As a developer, it should be irrelevant what the underlying architecture is. The only way Sparc works is if it is the most efficient platform and can run all the software.

Sparc cloud only makes sense if a customer does not or can not rewrite a Sparc app and doesn't want to manage Sparc infrastructure. It's a shrinking workload and it's future is drastically shrinking. Sparc is dead and Sun is a dog.

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Post ID: @2wpy+NkiQdKE

What is sparc for cloud? How one knows if he is developer for sparc on cloud or just sparc?

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Post ID: @2tiz+NkiQdKE

Rien

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Post ID: @2rxl+NkiQdKE

Qu'est-ce que Hamidou fait?

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Post ID: @2qiu+NkiQdKE

Whatever it is hamidou do, he it do with a French accent, that should it do

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Post ID: @2czz+NkiQdKE

He do lot things. He tell SC they need cloud. He tell ECA they no good. He say who care what customer say, we just tell them reference architecture and they buy. Customer don't want us to ask them what want. They want us tell them what need. That's how he do, Hamidou. He is not don't but do.

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Post ID: @2usc+NkiQdKE

What does he do, Hamidou?

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Post ID: @2tns+NkiQdKE

Just remember I said name is Hamidou not Hamidon't. He do.

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Post ID: @2rbo+NkiQdKE

Beauty of the big deal announced is they took as a support credit, not even any new dollars exchanged.

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Post ID: @1ccd+NkiQdKE

What are the numbers expected for the layoff? What percentage of the pillars db, fmw, app etc will remain on the sales engineering side? What percentage of the ECAs are expected to be replaced?

How long do people get to look internally for a transfer? Or are they just let go?

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Post ID: @1znx+NkiQdKE

Sick time never gets paid out by any company. Make sure you get your vacations nooner paid out. Take out sick time now

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Post ID: @1egn+NkiQdKE

Does anyone know what happens to the 56 hours of sick time that I saw appear for the very first time this year? Does it get paid out if you leave ? Or is this wishful thinking and they just wanted to officially limit sick time taken by people starting this year?

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Post ID: @1mja+NkiQdKE

Best part is that AT&T sham...I'd bet no new dollars and was just a support credit swap. Pitiful.

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Post ID: @1btt+NkiQdKE

Thanks, OP, great post. Though, I'd be careful with posting names here, they have no naming names policy, and site admins nuke posts containing names. I don't think the rule applies to public figures, but not sure which management levels they consider as such.

Would hate to see a good post going to trash can just because few names are dropped.

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Post ID: @1inx+NkiQdKE

Post of the week

I see this one going over 20k views

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Post ID: @1jez+NkiQdKE

@rsw - oh, how terrible that the cat is out of the bag - wouldn't be such a secret if oracle did what decent companies do: announce layoffs in advance, rather than screw employees with surprises!

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Post ID: @1jqs+NkiQdKE

NetSuite is the new goose with the golden eggs, everything else - toast

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Post ID: @1rxd+NkiQdKE

Take your sick time 56 hours because as of June 1 you won't have any accrued vacation.

Not true. As of June 1 you stop accruing new vacation, but you continue to have your accrued balance and will continue to use it (or get paid for it if "separated" from the company).

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Post ID: @1qbi+NkiQdKE

What about SMB Apps (Netsuite, HCM, ERP or CX) and Tech?

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Post ID: @1elf+NkiQdKE

Who is leaking all this confidential info?

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Post ID: @rsw+NkiQdKE

If you look at all the useless and incompetent SVPs, it makes you wonder what the promotion/ hiring criteria are. Hmm, would brown nosing up to MH be right up there way ahead of competence? One could easily come to that conclusion, could one not? How many of the will disappear in the clean up here?

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Post ID: @mok+NkiQdKE

And once this brilliant plan is implemented oracle will implode, which won't help the people being laid off, but you will get revenge in seeing LE's wealth take a precipitous fall as oracle stock tanks 6 months from now

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Post ID: @hyc+NkiQdKE

All the termination paperwork is completely updated for 2017 just in time for a good RIF-ing and there are hundreds if not a 1000 new Sales jobs posted on TallyHoe (Talayoff) I mean Taleo. Take your sick time 56 hours because as of June 1 you won't have any accrued vacation. Good luck everyone!

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Post ID: @mhg+NkiQdKE

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