Oracle could reportedly cut up to 7000 to 8000 jobs in India as the company seeks to reduce costs amid heavy spending on AI and cloud infrastructure. The reported layoffs could affect thousands globally and may be announced in September, though Oracle has not confirmed the cuts.
Oracle plans another round of layoffs that could affect thousands of jobs in India. Heavy spending on cloud and AI infrastructure drove the layoffs.
Oracle could undergo another round of layoffs that may impact 7000 to 8000 employees. Yet the exact date is unknown.
The sudden job cuts appear to be a difficult time for Oracle employees. The company has already eliminated a significant number of employees over the past year as it increases spending on AI and cloud computing.
At the end of May, Oracle cut 2,100 jobs as part of its AI expansion and business reshaping. Within a month, Oracle announced another round of layoffs, suggesting a very difficult time for employees. It officially disclosed 21,000 jobs over 12 months ending May 31, reducing its global workforce by 13 percent to roughly 141,000 employees.
Oracle laid off thousands of employees to free up internal cash and fund massive capital investments in artificial intelligence (AI) infrastructure and data centres. Another round of layoffs is believed to be happening for the same reason.
Oracle is asking people to find ways to cut spending. The anticipated job reductions are likely to be more widespread than a restructuring of a single department or business unit.
The exact scale of the layoff is unclear, but internal estimates circulating among employees suggest the number of affected employees globally could be between 7,000 and 10,000.
Employees have expected the layoff around the beginning or middle of September. The exact date is still unknown, which deepens employees' worry. The current layoffs could affect many Indians.
The uncertainty has heightened anxiety among employees, especially among senior staff and those in higher salary ranges, who are thought to be among those potentially impacted in this round.
The workforce reduction is happening alongside heavy investment in the infrastructure needed for the AI boom. According to a recent report, Oracle has been expanding its data-centre capacity and cloud business as demand from AI companies increases.
The expansion clearly affects the company's balancing act. It requires additional computing infrastructure to remain competitive in the AI market, while also managing costs in other areas of the business.
In its annual report, Oracle disclosed that it spent roughly $1.8 billion on severance and various restructuring expenses throughout the year. The company also cautioned investors that organisational changes could disrupt operations and lead to shortages in certain skilled roles.
Oracle has not confirmed the reported new layoffs and did not immediately comment on the latest reports.
The developments also come shortly before Oracle's next quarterly results, scheduled for September 11. If the reported cuts are true and executed, they would add to a series of workforce reductions already undertaken as Oracle reshapes its business around cloud and AI.
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