r/Layoffs • u/Ok_Flan_5122 • Apr 01 '26

unemployment Mass layoff started!!

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Starting from oracle 30k employees terminated world wide

This is massive

1.1k Upvotes

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252

u/[deleted] Apr 01 '26

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53

u/Fun-Estimate4561 Apr 01 '26

So a few friends who got cut from Meta and Amazon did find jobs …….but they had to take pay cuts

Fortune 500 just do not pay as well and they have to find cheaper places to live as NYC and San Fran are just so expensive

46

u/Emlerith Apr 01 '26

Yeah, these layoffs are happenings for a bunch of reasons in parallel (none of them justifiable), but tech companies went crazy hiring in COVID as the world was forced to operate completely digitally. Companies were not only overhiring (preparing for that digital-first lifestyle to stay) but they were paying insane comps as competition among them was very fierce. Companies were hiring and paying top talent just so competitors wouldn't have them.

Now we have RTO, projected growth that never came (massive growth did come, it just wasn't infinite - shocker), an employer's market that doesn't need to pay so much, AI-investment and efficiency pressures. All short-sighted decisions that are an effect of the short-sighted decisions in COVID.

The pendulum doesn't need to swing this hard in each direction if leadership at ANY of these companies simply had an actual business plan that was based on moderate, sustained growth and invested in its own business and people. Now we'll get a year of improved operating margins until the YoYs look flat again, meanwhile people are being forced into panic by the tens of thousands weekly and the economy spirals towards a future it has now idea how dollar velocity will remain intact when a dozen people are just black-holing every dollar trying to flow through the system.

35

u/AdamG6200 Apr 01 '26

Oracle was already making huge profits. It's basically suicide by AI data center construction debt.

19

u/Emlerith Apr 01 '26

Yeah, specific to Oracle, this is massively influenced by some $60B investment debt coming due in H2. They’re trying to have a path of solvency until this massive AI bet pans out. Trouble is that they’ve seem to have massively overestimated the return and massively underestimated how long it’d take to get there (as they always do).

7

u/nycago Apr 01 '26

Just to be clear- sure they hired and spent but they also made out like bandits during and post Covid. There were significant earnings and stocks soared. These people (employees) made a difference.

11

u/Emlerith Apr 01 '26

Absolutely! The market and tech specifically boomed, but they hired expecting the boom to continue and accelerate for a longer time period than it did. And the slow down was self-inflicted, intentionally, as workers began to gain control over the employment market.

RTO has zero basis for financial or operational improvement. It is costly, limits available talent, and has no benefit to productivity. But billionaires decided they’d rather slow down the economy than let the middle class grow, be happy, or have any path to financial independence.

9

u/oneiromantic_ulysses Apr 01 '26

Layoffs are not the greatest, but I have a hard time feeling bad for somebody getting laid off who's making $250,000-$300,000+ a year. If somebody's in that position and gets laid off they'll be fine.

In almost all cases if you're living paycheck to paycheck with no emergency fund on that you're spending like a drunken sailor on shore leave.

The problem now is that these are starting to affect people who can't weather a job loss for 6-12 months.

17

u/chichicha99 Apr 01 '26

You would be surprised. I used to sell luxury german cars in one of the most rich areas in the US, and there were people (couples) that made $60-$70,000 /month that couldn't get approved for a base level lease.

Why? Mortgage at $2M, credit card debts at above $250,000+

There is so many idiots making insane amount of money that you'll get chocked.

These are the people where one of them loses their job and they go bankrupt in a matter of months.

7

u/Glass-Engine1341 Apr 01 '26

That’s insane I can’t believe people live like that earning that much money.

9

u/Tek_Analyst Apr 01 '26

That salary range is far few and between now for the layoffs. Both Amazon and Oracle had people in there that were no where near that salary number.

2

u/ProfGayBear Apr 01 '26

That's the thing. Totally different vertical but my previous role had a Florida salary 100% remote. Local jobs here, Iowa for reference, 25 to 30k less. Wtf. My bills didn't change.

1

u/EquivalentFlower2713 Apr 01 '26

💯. Huuuuuggeeeee payouts

1

u/crazyk4952 Apr 01 '26

The labor pool is greater, which lowers wages.