Oracle has begun laying off thousands of employees globally, with reports suggesting up to 30,000 job cuts, including about 10,000–12,000 in India, as the company restructures its business amid mounting costs linked to artificial intelligence (AI) investments and a sharp fall in its stock price.
According
to a report by CNBC, Oracle has started informing employees about the layoffs, though the company has not made a formal public announcement. The report, citing people familiar with the matter, says the cuts come as the software major grapples with investor concerns over rising debt and weakening cash flows tied to its aggressive AI infrastructure expansion.
A separate
report by Business Insider also indicated that the layoffs began earlier this week, marking one of the largest workforce reductions in the company’s history.
Oracle, which had around 162,000 employees as of May 2025, has declined to comment on the development.
India among the Worst Hit
India has emerged as one of the most affected regions. Impacted employees told media outlets that about 12,000 jobs have already been cut in the country, with another round of layoffs expected within a month.
Reports suggest the layoffs span multiple divisions, including Oracle cloud infrastructure (OCI), revenue and health sciences, SaaS (software-as-a-service) operations, and subsidiaries such as NetSuite.
Employees described the process as abrupt and impersonal, with many receiving termination emails as early as 5am–6am. In several cases, access to internal systems such as virtual private networks (VPNs) and communication platforms was revoked immediately after notification, leaving no transition period.
AI Pivot and Financial Strain
The job cuts are widely seen as part of Oracle’s broader restructuring strategy as it pivots towards AI and cloud infrastructure.
While the company continues to invest heavily in building data centres to support AI workloads—competing with rivals like Amazon—it is also facing pressure from investors over the scale of its capital expenditure.
Oracle’s stock has declined about 25% this year, underperforming other major technology firms, according to the CNBC report.
To fund its AI expansion, the company has increasingly relied on debt markets. In January, Oracle announced plans to raise US$50bn (billion) through debt and equity. However, executives later indicated there are no further borrowing plans for 2026.
Analysts at TD Cowen, cited in media reports, had earlier estimated that cutting between 20,000 and 30,000 jobs could generate US$8bn (billion) to US$10bn in additional free cash-flow.
Strong AI Demand, but Execution Risks
Despite the layoffs, Oracle executives have maintained that demand for AI infrastructure remains robust.
The company has reported a sharp rise in contracted revenue, with remaining performance obligations jumping significantly following a major deal with OpenAI reportedly worth over US$300bn.
Executives have said demand for GPU (graphics processing unit) and CPU (central processing unit)-based AI infrastructure continues to exceed supply, underscoring long-term growth potential.
However, the restructuring highlights the challenges faced by technology companies as they balance massive AI investments with cost control and profitability.
Growing Uncertainty for Workforce
The sudden nature of the layoffs has triggered anxiety among employees, particularly in India, where the tech sector has already seen multiple rounds of restructuring.
Workers pointed to a shift in hiring priorities, with companies increasingly seeking AI-skilled talent even as traditional roles are being cut.
The developments at Oracle reflect a broader trend in the global technology industry, where companies are aggressively reorienting towards AI-led growth while trimming workforce costs to maintain financial stability.
As uncertainty persists, further layoffs cannot be ruled out, with reports indicating that additional rounds of job cuts may follow in the coming weeks.
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