Former Oracle Employee Accuses Layoffs Targeting Stock Option Holders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy ORCL?
A former Oracle employee has accused the company of targeting workers "with outstanding stock options" during its recent round of layoffs, Marc Vartabedian of The New York Post reports. In a Linkedin post, 30-year Oracle veteran Nina Lewis wrote, "Well, after 30+ years at Oracle, I join the 30,000 or so laid off today. Quite a shock. Many of the absolute best colleagues were laid off as well... It seems (BUT I DON'T KNOW), maybe, layoffs follow an algorithm of high level individual contributors and mid-level managers - especially those with outstanding stock options." In a follow-up post, Lewis clarified that she had "NO specific inside knowledge of any layoff algorithm' but that rumors were circulating among employes "appear to match what we see around us as a possible pattern."
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 178.340
Low
180.00
Averages
309.59
High
400.00
Current: 178.340
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Oil Price Impact: The index previously fell 12% due to soaring oil prices affecting consumer spending and corporate earnings, but the reopening of the Strait of Hormuz by Iran led to a drop in oil prices and further market gains.
- Uncertain AI Investment: OpenAI's revised spending plan to $600 billion by 2030 from $1.4 trillion may lead to reduced infrastructure spending by cloud providers like Oracle and Microsoft, impacting revenue across the tech sector.
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- AI Spending Downgrade: OpenAI's announcement to reduce its computing capacity spending from $1.4 trillion to $600 billion by 2030 may impact infrastructure investments by cloud providers like Oracle and Microsoft, leading to a ripple effect across the tech industry.
- Data Center Delays: Approximately half of the data centers planned to open in the U.S. this year are expected to be delayed or canceled due to component shortages and rising energy costs, exacerbating market concerns about the AI sector, especially given that tech stocks account for 60% of the Nasdaq-100's value.
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- Analyst Optimism: Despite the steep decline in stock price, 28 out of 35 Wall Street analysts still rate Oracle as a Buy or Strong Buy, with a median price target of $260, suggesting a potential upside of approximately 60%, reflecting confidence in its cloud computing and AI infrastructure transformation.
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See More
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- Growing Orders: The company signed a contract with Oracle to deploy 1.2 GW of capacity, with potential expansion to 2.8 GW, significantly enhancing revenue visibility and indicating robust demand for its technology in the market.
- Expanding Customer Base: Bloom Energy has deployed solid-oxide fuel cell systems for several major global companies, solidifying its market position in providing clean and reliable power solutions as AI workloads increase pressure on power supplies.
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See More
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- Pricing Model Shift: Anthropic is transitioning from flat-rate enterprise pricing to per-token billing, ensuring that revenue reflects actual usage, a strategy aimed at addressing the economic imbalance caused by changes in agentic AI usage patterns, thereby enhancing the company's competitive position in the market.
- Increasing Industry Pressure: As the AI industry gradually accepts per-token billing models, companies like OpenAI face similar transformation pressures, potentially leading their customers to reassess AI usage efficiency, which could affect future market performance and investor confidence.
- Investor Focus: Anthropic and OpenAI are expected to pursue IPOs this year, with investors likely to first scrutinize the authenticity of demand; Anthropic's per-token billing provides clearer data on customer value, while OpenAI may face greater challenges in proving the authenticity of its growth figures.
See More
