Oracle cuts thousands of jobs globally as it pivots towards AI investments

US technology major Oracle Corporation has reportedly laid off tens of thousands of employees worldwide, with India emerging as one of the most affected markets amid a sweeping restructuring drive.

According to reports, as many as 30,000 jobs may have been cut globally, including around 12,000 roles in India. The layoffs are part of a broader effort by the company to streamline operations as it shifts focus towards artificial intelligence (AI) and large-scale data centre investments.

Employees impacted by the move were informed through internal communication that organisational changes had rendered certain roles redundant. Another round of job cuts is also expected in the coming weeks, according to sources familiar with the matter.

The company, which employs roughly 30,000 people in India and over 160,000 globally, has not officially confirmed the scale of the layoffs. However, it is understood that affected employees in India have been offered severance packages that include compensation based on tenure, notice period pay and additional financial support, subject to certain conditions.

The restructuring comes as Oracle accelerates its push into AI infrastructure. The company has reportedly committed to massive investments in building data centres, including a multi-year deal valued at over $150 billion to support advanced AI capabilities. This expansion is expected to require significant capital expenditure, including the procurement of millions of specialised chips.

The global technology industry has been undergoing a significant wave of job cuts as companies restructure operations and ramp up investment in artificial intelligence (AI). India, too, has been affected, with both multinational and domestic firms reducing their workforce in recent years.

Data from Layoffs.fyi indicates that 2025 witnessed widespread layoffs across the sector, with approximately 112,732 employees losing their jobs across 218 companies. The scale of these reductions highlights one of the most extensive phases of restructuring in the industry, driven by rapid adoption of AI and automation alongside ongoing economic pressures.

Leading companies such as Oracle, Amazon and Intel have also trimmed their workforce as they reposition themselves for an increasingly AI-focused future.

To fund these ambitions, Oracle appears to be cutting costs across its existing operations. Analysts estimate that the layoffs could help the company generate billions of dollars in additional cash flow, which can be redirected towards its AI and cloud initiatives.

The company is also facing mounting financial pressures, with debt levels exceeding $100 billion. Rising borrowing costs and concerns among lenders have added urgency to its cost-cutting measures, particularly as it undertakes capital-intensive projects.

At the same time, uncertainties remain around demand for its new infrastructure. Key customers are reportedly exploring alternative technologies, raising questions about the long-term utilisation of Oracle’s investments in current-generation systems.

Despite the job cuts, Oracle recently reported strong financial performance, posting its highest quarterly revenue in over a decade. Its stock also registered gains following the developments, although it remains significantly below previous highs.

The layoffs highlight a broader shift within the technology sector, where companies are increasingly reallocating resources towards AI-driven growth areas. For Oracle, the transition underscores the challenges of balancing long-term strategic investments with immediate financial and operational pressures.

With PTI inputs