I don’t understand how you have layoff and new hires at the same time. The company is hiring many new employees but you say there are layoff, maybe it is because the current employee make too much money and it is cheaper money to hire new young who do not want as much money. This sounds like business to me, and you would probably do the same to increase your bottom line if you were them.
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Because people aren’t interchangeable parts who can be thrust into a different job or forced to move to a new location at the drop of a hat. So you lay off CPU design engineers while hiring cloud sales people or database admins, or layoff support people in Germany while hiring in Romania.
Oracle might have said they want to pay young people $50k, train them, and then let them get hired buy a company that pays better.
Great idea MH!
Actually, Oracle is laying off the experienced high value sales folks and SE's in product lines where they are losing their a-- against the competition. They know they must do this because they have not been investing in the product engineering and development teams to keep the products competitive, current, modern, full featured and truly cloud ready, multi-tennant or otherwise. They have to layoff the expensive talent and hire the unexperienced wunderkins because to cease to exist would freak out the wallstreet folks.
That said, Oracle has never been a stand out tech company, contrary to popular urban legend and buzz. Oracle has been a flat growth company (revenues stay within the same range year over year. The only thing that changes is that Oracle has to buy companies to keep sales up b/c of the client churn and sales drain year over year. This phenomenon of not investing in products to keep them fresh is not a new one. The cloud shift is just so significant that its finally catching up with Oracle. Oracle has no track record for multi-tennant SaaS other than their aquisitions and those are getting wrecked as they are absorbed into the Oracle "Cloud" Data centers that are a sh-- show.
Just sell your stock as soon as you can if you are an investor.
If you are a senior talent with any self respect get out ASAP before you are tainted with the Oracle career stain of too many years in the Oracle bureaucracy.
If you are a lifer employee you are part of the problem. Just stay and wait to be axed. No one will hire you anyway.
If you are a kiddo just getting started, take the initial job for $50K in the sales trainee call center and hope that it doesn't wreck your future prospects. (Note that in MH & LE's speech announcing the new Oracle Austin office they didn't talk about selling and being successful. They spoke about training new young employees and giving them a launching point. There was ZERO talk about cloud innovation and future product dominance...this is very instructive.)
Good luck to all.
Onward and upward!
Replacement with college grads and people from India.... or college grads FROM India to go the cheapest route.
The incompetent and insecure management love getting rid of the people who knew they were idiots. They can be replaced with young cheap people who will take a long time to figure out how they are being manipulated and that their manager is an total airhead. Narcissists need new supply, people who don't know how f---ed up they are and will take time to figure that out.
It appears to me, one group, in a completely incompetent dysfunctional area, was laid off by saying that "we don't need this application any more". Then after the people were laid off, then they just say "Oh, I guess we need an application like that after all". Then they hire new cheaper people. Manager is an idiot and he's happy to start over new with a fresh supply of people who don't know anything about him.
It's a shell game. Waiting to see what happens by June 1st. At some point everything will become so dysfunctional that no one will be safe.
If this is true:
"....Oracle is trying to layoff people in areas of the business that they anticipate will slow down in the future and hire in areas that will grow the fastest. ...."
then how come consulting /OCS which historically has been a big money loser still there?
only a Big A** / VP getting paid for keeping people on the bench??
It's all about lowering costs. MH thinks the class of program will save Oracle a lot of $$$$ while being as effective. Only time will tell if he is right. Austin campus is a huge part of recruitment and retention because frankly CO has been a colossal failure. Turnover rates are off the charts. It's also extremely hard to sell enterprise software over the phone.
Oracle is trying to layoff people in areas of the business that they anticipate will slow down in the future and hire in areas that will grow the fastest. Unfortunately for the plan, the growth areas are not growing fast enough and the layoffs in the slowing areas are making them slow down even faster. At the same time, they are trying to cut costs by replacing expensive workers with less expensive workers.
Unfortunately, they are losing highly skilled workers and gaining a lot of unskilled workers without a lot of potential. Oracle has also been shifting jobs to India for a long time. In my group, 2 US based people left and my manager was told he could only replace them with people in India. The 2 new Indian employees were right out of school and completely useless. One of them has potential and will be productive eventually and the other will remain useless. In general, the quality of new employees is lower than the ones being laid off. This will also hurt the growth areas. In development, the turnover rate for new just out of school people (from top schools) is 90%. This will also hurt growth. All these problems are compounded by bad management that causes low morale and low productivity.
@SnLa5va-1mem : unfortunately even this oversimplification is totally uncorrect.
Oracle is laying off from LOB still making good money with good margins (just as an example, HW lob was making give or take 2B$ with 40% margin, or a net contribution before taxes of 800M... not to speak of onprem lics, which is still a vital cashflow for Oracle), and is hiring in LOB that are still underperforming on the budget and (quite incredibly) slowing down their growth rate even with a sub 1% market share.
In other words: Oracle is betting (yes, that's the correct word) on something still very unclear and not growing as expected (Oracle cloud), while defocusing from something still very profitable and providing constant cashflow (Oracle onprem).
That's why the stocks are going down (and will continue to do so, unless Q4 can do some magic) even if Oracle has bought-back few B$
BTW: if as someone is saying layoffs are not real, the total headcount should be rising since we are hiring a lot of (useless, and not bringing in any added value) "class of" youngster. a rapid check can confirm the total headcount is stable or slowly decreasing. so, YES LAYOFFS ARE REAL
It's quite simple. You layoff from lines of business that are doing poorly and you hire into those that are growing.
OP: Naive oversimplification.
How is it that you are unemployed yet you have better knowledge of how to run a business that these multi-millionaires?
The layoffs are real and they are stupid and based on dysfunctional short term thinking. All the 3 Stooges care about is saving some money, they are also dumb enough to think that a bunch of kids fresh out of college stuck in a call center can replace experienced field sales reps - how stupid can you be?! Oracle is one f---ed up company run by 3 very f---ed up people.
In the ideal world you right, but in Oracle it happens - not because of too much money someone is making or not because he is not skilled etc., it is because of poor leadership and political victims. The true reality.
Actually, I would NOT do the same. By laying off a number of experienced people, you lose the product knowledge and experience with the product and clients. It's a short term gain with a long term loss. In addition, as you lay more experienced people off, the ones that remain will start to look for other positions in other organizations, thus continuing the "brain drain" of experienced people.
This is business management 101; layoffs destroy morale and you lose the people that know the product. When the clients are trying to get their answers and there are fewer people that know, they WILL go elsewhere. I've seen it too many times.
IT BECAUSE THE LAYOFF NOT REAL