When the SEC filings are reported we get a glimpse at the current years restructuring program which will indicate how much is set aside in employee severance packages. The 1.1 billion set aside launched over 23,000 severance packages since 2016.
This is an important clue for example using that as a rule of thumb we get a basic ratio if its billion 2.2 set aside for restructuring in FY 2020 we could expect 46,000 severance packages. The interesting thing is that the newly formed Global Corporate Project and legal entities formed might have their own reports each with their own restructuring costs. That means we have to track down each report to determine the total number set aside for severance packages.
HR sent out an official mail describing the reorg, and said it will affect around 10% of total work force, with the creation of the new OGS legal entity.
April 29th 2019: Driving Efficiencies at Oracle—Global Corporate Project
Oracle is implementing an efficient, long-term and sustainable global services corporate structure. Our Human Resources team, along with other cross-functional teams, is helping to implement this effort. … Currently we are focused on reviewing Oracle's internal structure for global activities including … cross-country expense charge backs, research and development (R&D), and billable consulting with regard to cross charging mechanisms to help us be more efficient.
Some legal change examples below:
https://beta.companieshouse.gov.uk/company/SC246876
https://www.societe.com/documents-officiels/oracle-global-services-france-sarl-850981358.html
On 6/3/2019 11:29 AM, MH wrote:
In FY2020 we are announcing a new organization structure in our North America technology business which will facilitate increased focus on both our Cloud and License business. RG will drive our Cloud technology business, imperative to the future of Oracle. Oracle Autonomous Database and Gen2 Cloud are some of the most critical innovations in the entire technology industry.
MH will lead our License technology business. His team will be focused on our extensive base of license customers to address increased option penetration, drive deeper customer partnerships with customer ULAs, and increase engagement with our ISVs - all critical to enable our BYOL strategy.
This new structure will enable us to offer our customers the most choice. We help our customers run their business on-premises, in their customer data center, in a public cloud, or in a combined environment.
Let’s focus on making FY2020 our best success.
Mark
What does this mean? @ZailU5f
On premises and cloud business at Oracle will be split in two. New clearly defined organizations will be formed to support both... the on premise division is slated to be formed only to be culled to bare bones.
According to the rumor posted before MH's letter its pretty clear that the Organization run by MH will be culled to bare bones. Hopefully that Organization is not fragmented and has a clear number set aside for severance packages. We can then make a tally as to what the real layoff numbers will be. Either we confirm the 10% to 30% number or we can dismiss it. My fear is that MH has split the Organization he runs globally and in so doing has hidden the true severance package number in many smaller companies across the globe to make it harder for us to determine how big this next round of layoffs will really be. Each country may have its own set of financial reporting rules where he can play games hiding the truth in the size of the layoff.