Cuts 10% of workforce to put money into AI

Cuts 10% of workforce to put money into AI


Oracle has begun a brand new spherical of layoffs, lowering its workforce in a number of key areas. The job cuts, which have an effect on varied departments, are half of a bigger restructuring effort to give attention to synthetic intelligence (AI). These adjustments come as Oracle posts robust monetary outcomes, underlining a strategic pivot throughout the firm to prioritise high-growth areas.

A strategic restructuring

The current layoffs impacted an estimated 10% of Oracle’s employees in India, a significant hub for its world operations. The corporate has additionally eradicated roles in the USA, Israel, and Canada. A lot of the cuts are within the Oracle Cloud Infrastructure (OCI) division, with roles in enterprise engineering, Fusion ERP, and AI/ML challenge administration additionally affected. A major variety of the job eliminations within the US occurred within the Seattle space, a former core for Oracle’s cloud operations.

Oracle’s monetary stories present the corporate is doing properly. In fiscal yr 2025, Oracle noticed complete revenues enhance by 8% to USD 57.4 billion. Its cloud enterprise stays a prime performer, with cloud income up 27% to USD 6.7 billion. Regardless of these robust numbers, Oracle executives have repeatedly acknowledged that scaling knowledge centres and cloud capability are essential to future income development. The corporate has publicly confirmed that “workforce adjustments” are a part of “strategic changes” to handle the excessive prices of AI infrastructure investments.

This transfer follows a broader development within the tech {industry}. Many massive tech corporations are chopping jobs in some areas to unlock capital for AI improvement. For instance, Microsoft lower round 15,000 jobs earlier this yr, and Amazon laid off lots of of workers from its AWS cloud unit. The choice to chop jobs whereas the corporate is financially steady exhibits that Oracle is reallocating assets to organize for a future pushed by AI. It additionally highlights a rising industry-wide shift the place corporations are streamlining their operations to fund next-generation know-how.

Influence on workers

The layoffs caught many long-term workers off guard. Many individuals took to social media to share their experiences of being all of a sudden laid off regardless of years of service. Oracle has not disclosed the entire variety of workers affected worldwide. As of Could 2025, Oracle had a world workforce of 162,000.

Whereas job cuts have been taking place in sure areas, Oracle continues to rent in others, notably in its new headquarters in Nashville, Tennessee. This means that the corporate is not only downsizing however is actively reshaping its expertise pool to match its new enterprise priorities.



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