Get ready for the biggest layoff in the past ... decade? Its will be bigger than anything that happened this year so far. Here is an interesting thing to consider, how the Oracle 10q shows how much will be paid out in the final round of severance packages (assuming the date is May 31 2018)
http://d18rn0p25nwr6d.cloudfront.net/CIK-0001341439/d68e7357-e1ab-40fe-88ba-56d6b1f79f76.pdf
The execs have used accrual accounting to make it less clear as to how many layoffs are about to come. If you look at the balance of 1,002M accrued to date and $1,114M total expected costs you might think..."whew" its all over. Maybe 114M left to go... but "Accrued" does not mean "paid." It just means that they already counted for the expense of your severance package, you just have not gotten it yet. Oh... and by the way we decided we might need an extra 114 Million in additional severance packages.
If you look at the last 10q it showed over 400 million in severance packages to be paid out... lets bump that up to a minimum of 514 Million. What that means is everything that has happened so far from May 31st 2017 until now... was just half the picture. Get ready for the second half of the restructuring costs to be paid out. But what really is the expected final number? If they are using accrual accounting then we have to deduce what the remaining cash payments must be.
If we look at the cash payments its 452 Million plus 30 Million in adjustments... for a total of 482 Million in cash payments. If the total is expected to be 1,114M then the cash payments to come should be 1114 - 482 = 632 Million in severance packages. That is bigger than the combined total so far to date.
The big splash has yet to come and we know the deadline is May 31 2018.
Fiscal 2017 Oracle Restructuring Plan notes that it is "Restructuring costs recorded for individual line items primarily related to employee severance costs."
Total breakdowns are as follows:
Cloud and on-premise software $300 (Or 27% of total severance packages)
Hardware $241(Or 22% of total severance packages)
Services $130 (Or 11% of total severance packages)
Other $443 (Or 40% of total severance packages)
Its the "Other" that has me worried... over 40% could be anyone. What we do know is that less than half the 1,114M has been paid out. We have 70 days to disperse with $632,000,000 dollars in cash payments to employees with severance packages.
It will be a blood bath. We know that Oracle has finalized its Austin Campus and class of programs. We also know its closing several other offices.
https://www.bizjournals.com/twincities/news/2018/03/12/oracle-slashing-its-minneapolis-office-space.html
Oracle Corp.’s Minneapolis office is shrinking as the tech company shakes up its operations across the country.... This month it began moving thousands of employees into a new, 560,000 square foot campus in Austin Texas. It also recently posted ads for hundreds of job opening in Seatle, where it has leased 160,000 square feet.
Seems like the rumors of office shrinkage and closing is correct. It also seems like the end is very near. A massive layoff is coming as MH's vision for a new Oracle with a cheaper employee workforce (AKA "class of") is becoming reality.
Sorry to be the bearer of bad news, but better to get 70 days notice, than the zero notice Oracle corporate policy gives you. The rumors appear to be true and the 10q shows the biggest payout has yet to come! Get ready! You have been warned....
Best of luck to one and all!
One final note. We all know how this will end for Oracle. For us change is good and the market is awesome with less than 5% unemployment. Get ready to take the money and run. Besides, just look at how happy MH is to see his dreams come true. Its a huge move, and he has seen his vision through to the end.
https://twitter.com/MarkVHurd/status/939241479649632256
https://twitter.com/MarkVHurd/status/950782694144622592