Thread regarding Oracle Corp. layoffs

2018 Layoff Schedule - Important Read

High level rumors are circulating, Group Vice President (GVP) level rumors. These are not confirmed, but I am posting what I have heard here. Next major round of layoffs are slated for March 1st 2018. Most of this will be hardware related. Oracle is divesting itself of all hardware related development, and production will be scaled back to match only existing customer demand. The impacted groups will be sales, support and development. This includes all engineered systems.

There will be some small layoffs before March 1st but the big one for HW is slated for that round.

The final round is a major reduction in force on the field sales team in June 2018. All field sales will be rolled into the Oracle digital call centers coming online. Its no secret that one man is responsible for the Sales shakeup. MH began the process by recruiting and hiring replacements in 2010 and 2011. His final vision will be realized this summer with the opening of several new Oracle Digital campuses.

https://twitter.com/MarkVHurd/status/939241479649632256

Its important to realize that all field Sales will be let go including the "technical talent" this means all field sales engineers and ECAs (Enterprise Cloud Architects) pillar teams will be given a severance package. The entire Oracle sales team, and sales engineers and architects will only operate out of the Oracle Digital call centers. You may have already noticed new people on your calls with duplicate responsibilities to your own.

Two major considerations lend credence to the new sales strategy. With the advent of cloud, and the rapid adoption of opensource, the old days of influencing a CIO or a high level executive to make a decision to purchase multi million dollar enterprise off the shelf software is gone. Developers now have access to the infrastructure and software they need to rapidly develop a cost effective strategy. This realization is carefully documented in the 50 page book "The new King Makers"

https://thenewkingmakers.com/

http://try.newrelic.com/rs/newrelic/images/The_New_Kingmaker.pdf

Agile development and devops projects really work and it is changing the sales landscape. The cheese has moved and so has your job. It is time to realize this fact. Developers are now capable of making the decisions and implementing working cost effective solutions with opensource and cloud. The decline in enterprise level software and solutions is rapid and happening right now.

https://en.wikipedia.org/wiki/Who_Moved_My_Cheese

What is lacking in the new strategy (of moving all sales into Oracle Digital) is the ability to really understand and solve the customers problems. Helping Clients Succeed is fundamental to the success of any business, and this understanding has been lost at Oracle. With out people engaged onsite, sitting with the developers and helping them solve problems, Oracle products will not be selected. This is why it will be painfully obvious that the new strategy was a bad one. Oracle sells the large expensive enterprise software, and its current focus is not on helping the customer. The current focus is on shifting the expensive software to the cloud and reducing costs. All of this is well documented in the Oracle sales training and can be obtained by the link below.

https://www.amazon.com/Lets-Get-Real-Not-Play/dp/1596592060

Good luck to all of you. Its not a time to be angry. Its a time to prepare for the future. Be grateful that you are getting a severance package. Not all companies handle this the way Oracle has. Some handle layoffs better and many handle it far worse.

by | Post ID: @R4AdLKu
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And since the oracle cloud is a mere figment of LE’s imagination, there is no migration path and thus no future revenues. Oops!

by | Post ID: @R4AdLKu-dead

Oracle's only play is to migrate existing Oracle database and apps to the "Oracle Cloud." The only customer they tout is AT&T (cloud at Customer) which basically has Exadata as a Service on premises with a 5 year ULA, and a 5 year renewal at the same price at the end of the first 5 years.

The "Cloud at Customer" offering isn't really cloud, as it sits in the customer's data center. But I am 100% certain the 200 million or so (guesstimate) AT&T paid for the 5 year ULA was ALL counted as cloud revenue.

Also certain that cloud credits sold for support reduction at 50% on the dollar are counted as cloud revenue. Also pretty sure the vast majority of that is not being consumed at all. Closer inspection of those customers in Oracle cloud... touted for marketing purposes are there for free or at a substantial discount.

@QswfiJB and @OurfSwz are two threads on this site asking about possible SEC investigations on Oracle cloud revenue. Cloud washing at Oracle is definitely real. We all know that the Sales people are incented to sell cloud above all else. If the sales people put cloud credits in the contract as they are instructed, then Oracle management will simply say... I was following what the sales guy put in the contract. Shame on the sales guy for scamming Oracle corporation to line his pockets with commissions on cloud credits. The highest managers will say they relied on accurate information from the SVP, GVP, VP and director... They will distances them from the deal.

Point is with all the cloud washing going on, cloud revenue growth is pathetic compared to every other single cloud vendor including IBM. Who's fault is this? Who is selling cloud at Oracle?

That's the problem! The entire field sales team. At the end of Q4 oracle will fire the weak legacy sales team and replace it with new Oracle digital call centers with super young super bright new sales people trained on cutting edge cloud technology.

Oracle's new cloud will be self driving and automated, with machine learning. Oracle will sell a superior cloud based on software. We are selling smarter ways of doing cloud computing, rather than just throwing hardware at it. And so... we will see if wall street buys it.

But yeah this is all according to plan. The timing coincides with a faltering Q4, and massive layoffs of the entire Oracle field sales team, and sales engineers. The executives will say unequivocally they got rid of the problem.

by | Post ID: @R4AdLKu-dhlb

Only support revenue and DB revenues will be left and both will be declining, with apps support revenues declining much faster. A DB company with declining revenues can’t be worth more than $5-10 per share.

by | Post ID: @R4AdLKu-dgjf

Once the sales force is wiped out and only the hubs exist, I would expect a huge drop in revenue. With no real cloud offerings, nothing will be sold by inexperienced kids in the hubs.

I suspect that LE's plan is to purchase small "cloud" companies that are on their last legs in order to use their revenue for as long as possible in the "cloud" bucket. Don't think that can work long term.

I still think stock under $30 by end of calendar year 2018. This has got to be the last year they can prop up the stock.

by | Post ID: @R4AdLKu-dens

Except for the revenue generation part. Street is getting very clearly about the fact that real cloud companies are actually growing cloud revenues at a rapid clip; oracle is not. Oops! A minor inconvenience, wouldn’t you say? LOL! Party might be coming to an end - literally and figuratively!

by | Post ID: @R4AdLKu-bbzn

The scheme to get some tail makes a lot of sense to me. The turnover rate for the class of kids is completely unimportant then. In fact, the higher the turnover rate, the longer the need for the training and continuous stream of young women passing by LE and MH. I suspect they are proud of the turnover rate. Everything's working to plan. No problems here.

by | Post ID: @R4AdLKu-bths

Run away as fast you can.

by | Post ID: @R4AdLKu-axbm

Oracle’s so called cloud strategy and the sales layoffs never made any sense, this goes a long way to explaining what’s going on and why, none of which changes the fact that the 3 stooges are destroying oracle, but now at least we know why.

by | Post ID: @R4AdLKu-9mka

In other words oracle doesn’t have a cloud strategy, rather a harem strategy, with the Austin mega harem as the hub, for MH’s and LE’s benefit. No wonder it’s so integrated with living quarters and everything, just like ancient harems. That’s what happens with no governance in place by the BoD handpicked by LE to let him use oracle resources as his toy. SELL!

by | Post ID: @R4AdLKu-9zfk

From what I have read on this site, the existing sales people are training the class of kids. Why on earth are you doing that? Why aren't you leaving? You know that you are just training your replacements, right? Seriously, you are just helping MH transfer your job to someone else. Why are you helping him?

by | Post ID: @R4AdLKu-9drn

"Isn't it a comforting thought to know that your job may be gone soon just because MH is horny."

Wouldn't Hurd's departure be considered a win? And how much would it cost to settle with whoever he harassed? It would probably be a few million.

by | Post ID: @R4AdLKu-8xwn

Isn't it a comforting thought to know that your job may be gone soon just because MH is horny.

by | Post ID: @R4AdLKu-8dqx

"Has a reserve for the damages from the anticipated lawsuits from these parties been set up?" Don't worry, Oracle's fleet of lawyers are on it already. They've probably got template docs all ready to go...just need to insert names of the people/entities when the sh1t actually goes down.

by | Post ID: @R4AdLKu-8omu

LE and MH using oracle to chase young tail, that’s what it’s come to. Shareholders bail out ASAP!

by | Post ID: @R4AdLKu-8gfn

And LE is right behind him!

by | Post ID: @R4AdLKu-8vgo

Oh wow, what a great scam MH has worked out. I would bet these guys plan this kind of thing out from the start. MH doesn't think, "What would be good for the sales force?" first and work from there to make that happen. Instead he thinks, "how can I use my position to get some tail?", then he figures out where he can add some young women he can have access to and make up a good story for why that needs to be done. I would bet anything that's how he thinks.

Sick, really sick, and not at all surprising if true.

by | Post ID: @R4AdLKu-7qrj

OMG! How clueless! What could possibly go wrong here! Like everything! Has a reserve for the damages from the anticipated lawsuits from these parties been set up?

by | Post ID: @R4AdLKu-7wpu

LOL! We now know how MH’s reign at oracle is going to end - ignominiously in a high publicity lawsuit, just like at HP. Some things just never change! Can’t wait, it will be an awesome day!

by | Post ID: @R4AdLKu-7qkb

#metoo oracle edition

by | Post ID: @R4AdLKu-6dzn

Super lawyer GA got MH’s butt kicked out of HP, so if something bad happened to anybody at MH’s house of Horrors, i’m Sure she’d like to hear about it and help any unsuspecting victim at some wild party. Give her a call!

by | Post ID: @R4AdLKu-6ozx

Exec Mgmt told me that Oracle had to purchase the San Mateo Marriott because the Kids trashed it after the first few "Class Of" groups went through... http://www.sfchronicle.com/business/networth/article/Oracle-buys-San-Mateo-Marriott-9455940.php This article does not discuss the wreckage, but the backstory is Oracle had to buy it for legal reasons b/c of the destruction and ongoing problems these classless "class of" kids and the "training program" continually cause.

The wild parties and debauchery at this hotel are now legendary at Oracle. Most of the veteran sales folks and extended product teams are aghast at this behavior and tolerance for it.

To the business traveler booking a SFO hotel: Avoide the Marriott San Mateo as its an Oracle owned party annex.

by | Post ID: @R4AdLKu-6gxy

This reminds me of how consulting companies like Accenture and others treat their new hires. Either you perform well enough and get promoted, or you get fired. This repeats until you reach your level of incompetence. Many are culled after the first year, those who survive get promoted and run through the ringer again, until eventually after just a few years everyone is gone, Of course, there is fresh meat to replace them, so they don't run out of bodies.

by | Post ID: @R4AdLKu-6nsq

A couple of over the hill old geezers who want to chase young skirts, figure out that if they only hire young kids and help them organize parties at the company provided dorm in Austin, they will improve their chances of getting some, and thus thousands of experienced sales people who actually generate sales get fired.

@R4AdLKu-6qni, this may not be far from the truth.

http://www.businessinsider.com/oracle-class-of-program-college-recruiting-mark-hurd-2016-9

Oracle has since changed the training program, in large part because Hurd hosts a graduation party for every graduating class at his house. He meets and talks with each graduate and asks for suggestions to improve the program. They all said they wanted more training and more practice.

I wonder in all those parties if one lost graduate managed to find MH somewhere alone. I wonder if, just maybe something happened that should not have. I also wonder if that lost young graduate realizes that this is a golden ticket, to a million dollar or more out of court settlement. One last pondering makes me wonder if there was a away we could find out if this really happened.

by | Post ID: @R4AdLKu-6mur

THIS: “And, he says, as Oracle improves its training of both the college kids and the supervisors who mentor them, the number of Class Of graduates that leave is declining.” IS ALSO NOT HAPPENING BC of the ORACLE CORE CULTURE.

The kids who stay are fewer and farther apart. The caliber of kids coming on now are not the best & brightest. They are the complacent partiers who will hustle until they burn out or get married and see that there’s life beyond the post collegiate party scene.

The fact that this Fortune 500 co-CEO and Chairman stated to the media openly this “strategy” for back to the future blah blah blah with all their ridiculous reasoning and justification that’s it’s their big novel idea is laughable.

Oracle is an odious company run by at least three odious people. The leadership sets the tone and direction and atmosphere. Oracle’s history and customer reputation is odious. Look it up: odious. Says it all.

by | Post ID: @R4AdLKu-6gep

So now all employees and shareholders know how important decisions are made and strategy is set at oracle. A couple of over the hill old geezers who want to chase young skirts, figure out that if they only hire young kids and help them organize parties at the company provided dorm in Austin, they will improve their chances of getting some, and thus thousands of experienced sales people who actually generate sales get fired. Corporate America at its best!

by | Post ID: @R4AdLKu-6qni

The kids in hubs have figured out how to game the Phone systems at corporations to hit their call quotas and associated bonuses$ without actually talking to anyone at the companies, Mgmt has no clue.

This would not surprise me at all! More stupidity at the top. The kids have the game figured out and the old deranged guys at the top who think they are the ones using the kids, are really being used BY the kids!

LOL! Idiots!

by | Post ID: @R4AdLKu-5vfq

Utterly deranged! No sign of intelligent life on the top floor of 500, Beam me out of here Scottie!

by | Post ID: @R4AdLKu-5npk

Fwiw, SFDC & AWS are not jettisoning their veteran Sales teams. They are ramping up!

by | Post ID: @R4AdLKu-5gta

Truly excellent tech SELLS ITSELF. You think SFDC and AWS need to do this? Contrived methods to make an old dinosaur like Oracle into a startup are just to make more $$ for the grizzled old management team. Oracle still has a lousy reputation as an employer and a vendor.

by | Post ID: @R4AdLKu-5rzk

THIS “While Oracle knew chief information officers, Mr. Hurd said in an interview, "We didn't know the head of HR. We didn't know the chief marketing officer."” IS NOT TRUE. And any journalist who didn’t check up on it is obviously a shill to oracle public relations team. Furthermore, the following paragraph to the article that talks about MH hatching the idea to hire college kids so that he can then get contacts in the HR management or marketing management or financial management at each of his customers besides the CIO’s is a joke . First of all the veteran wraps wouldn’t tell him H if they had contacts at the top because They don’t want to take him to meet them as he is embarrassing, a compulsive liar and destroys relationships as fast as he gets introduced. And, the kiddos call the mai. Switchboards at their target companies and talk to secretaries ...they are notable to get high even meetings . How can a journalist not see through this? Or better yet, how can they not check into it. This media outlet publishing this should be ashamed at such half-a-- investigation.

SIGHHHH.

by | Post ID: @R4AdLKu-5fyq

“"All they could talk about was that they partied and they sold. They would go to work, sell stuff, party, sleep some, sell stuff and party. This was life. They were so energized," he remembers.

He told Ellison about the dinner and the two of them wanted to bring back that startup feel to Oracle. He and Ellison decided, "Let’s go back to the future, the way it used to be," Hurd recalls.“

There is soooo much you can infer from this quote!

  1. Two old white guys in major crisis

  2. Incorrect conclusion linking youthful energy with success

  3. Churn only at 40-50% ... today it’s more like 60-70%

  4. Sell, party, sleep, sell ... this is a) incorrect & b) not happening — hurts sakes performance by the hubs & kids is in the toilet so far.

  5. The kids in hubs have figured out how to game the Phone systems at corporations to hit their call quotas and associated bonuses$ without actually talking to anyone at the companies, Mgmt has no clue.

Oracle is on the way to becoming the laughingstock of tech.

by | Post ID: @R4AdLKu-5mlq

Oracle is not building a high school and never will. Oracle build a facility and rent it to charter school, Oracle do not own the high school.

by | Post ID: @R4AdLKu-5pkl

http://www.businessinsider.com/oracle-class-of-program-college-recruiting-mark-hurd-2016-9

The idea was inspired by a dinner he had with his daughter and her friends who had just graduated from college. They were working as salespeople at a startup and were rooming together in San Francisco.

"All they could talk about was that they partied and they sold. They would go to work, sell stuff, party, sleep some, sell stuff and party. This was life. They were so energized," he remembers.

He told Ellison about the dinner and the two of them wanted to bring back that startup feel to Oracle. He and Ellison decided, "Let’s go back to the future, the way it used to be," Hurd recalls.

And, because this is sales, all four of these Class Of grads said their favorite perk was the money.

Glassdoor says that Oracle BDCs make $68,000 on average, including cash bonuses and commission-sharing. But some of them have reported salaries to Glassdoor over well over $100,000.

High churn rate, no worries

That's not to say that all of the Class Of grads are happy or stay at the company. As the program heads into its fourth year, the churn rate is pretty high. Between 40% and 50% of graduates don't stick it out to become salespeople.

Hurd is fine with that.

"If this churned over four years to where we lost 40% of the people, we might lose half of that to other things inside Oracle. That is just fine," he says.

And, he says, as Oracle improves its training of both the college kids and the supervisors who mentor them, the number of Class Of graduates that leave is declining.

Meanwhile, sales of Oracle's all important cloud products, which most of these kids sell, were up nearly 80% last quarter and are on track to become a $2 billion business this year, Hurd says.

"If at the other end, I get 50% or 40%, it doesn’t matter. My entry-level costs to bring them is materially lower than what it would be to bring in a mercenary hire," he says, meaning poaching a top salesperson from another company.

"If I get people who are great and are productive, this is a home run for me," he says.

So long veteran field sales! If this post is right... and it looks like it is. June 1st 2018 is probably your last day.

by | Post ID: @R4AdLKu-5kay

http://www.foxbusiness.com/features/2017/08/17/oracles-sales-staff-revamp-is-bearing-fruit-wsj.html

Oracle Corp. is starting to see the benefits of revamping its sales force, addressing longstanding questions from Wall Street about the software company's commitment to cloud computing.

Just a few years ago, Oracle was ill-equipped to do so. Its highly compensated sales staff targeted chief information officers at corporate giants, looking for big-budget deals that came with fat commissions. The company not only bypassed smaller businesses -- who were among the early adopters of the cloud's web-based, on-demand computing services -- but also the division leaders at big companies who were starting to buy cloud services piecemeal.

While Oracle knew chief information officers, Mr. Hurd said in an interview, "We didn't know the head of HR. We didn't know the chief marketing officer."

So he created a program in 2013 to indoctrinate hires fresh out of college in Oracle's sales methods, rather than solely hiring veteran sales executives from other companies. Called "Class Of" -- playing off the term for a group of graduating students -- the program aims to develop a low-cost sales force that prospects for new markets. Oracle taps its own seasoned salespeople to become mentors to the newbies.

In four years, more than 4,500 representatives have gone through the five-week Class Of program. Mr. Hurd figures that in a decade or so all of Oracle's sales leaders will be graduates of Class Of

The program didn't initially sit well with some Oracle veterans, who worried mentoring duties would pull them away from managing their own accounts.

Good bye Oracle veterans!

by | Post ID: @R4AdLKu-5cle

This has to be true. Its too stupid not to be true. The executives really are going whole hog on global call centers. They really did set aside 1.1 billion in severance packages. They really do have over 400 million to go.

Lots of money to pay out in severance packages + new call centers coming online = solid probability this rumor is accurate.

by | Post ID: @R4AdLKu-5gmd

Oracle is now building high schools to teach the next class of. In 2019, college kids will be too expensive with their 6 figure student loan debt. Why not get high school kids for free and have them work on real projects for grades?

by | Post ID: @R4AdLKu-5inv

Momma don't let your kids grow up to be programmers, they should be doctors and lawyers and such... the masses will not have money to buy anything but food so it will not matter in the end... de-evolving to LCD.

by | Post ID: @R4AdLKu-4ypt

The turnover of these new kids is astronomical, in excess of 50% over a 6 month period. He has, oracle bought a hotel along rt 101 - the Marriott right next to the SFDC office, to have somebody to house them all for training. Given how little training oracle gives them, needing to own an entire hotel property gives you a sense of the volume of kids being processed through the wringer. Insane!

by | Post ID: @R4AdLKu-4htc

To echo the last couple posters, employees are like widgets to Oracle. That’s why there’s no professional development, minimal raises (not even COLA) or other retention efforts (RSUs), etc. To the Three Stooges, newer cheaper widgets can always be found. So...the new call center in Austin, which they aim to fill with cheaper widgets.

Wonder how Oracle’s efforts to fill those “dialing for cloud dollars” seats at the new building is going? Has ORCL’s illustrious reputation as an employer preceded it with the millennial set?!

by | Post ID: @R4AdLKu-4gpx

@3ite - spot on!

by | Post ID: @R4AdLKu-3qbw

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