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Oracle cuts jobs again as AI and cloud spending surges
Oracle is cutting some jobs in India even though its cloud and AI businesses are growing quickly.
The company has not said exactly how many people will lose their jobs.
Some reports estimate that about 3,000 Indian workers could be affected, but this number is not confirmed.
Product engineering appears to have more cuts than some other teams.
Oracle says it is changing how it uses money and employee time.
It is also spending much more on computer infrastructure for AI customers.
The company’s leaders told employees to focus on useful work rather than simply doing more with fewer people.
This means Oracle is expanding some parts of its business while reducing or reorganizing others.
Oracle has begun another round of layoffs in India, but has not disclosed the number affected.
Reports estimate that about 3,000 Indian employees could be impacted, though the figure remains unconfirmed and may change.
Product engineering appears to face more reductions than support and consulting, with some senior Oracle Financial Services Software employees also reportedly affected.
Oracle’s global headcount fell by about 21,000, or 13%, during the financial year ended May 31, 2026, to roughly 141,000 employees.
The cuts come as Oracle increases AI infrastructure spending, including $28.5 billion in quarterly capital expenditure and a forecast $90 billion-$95 billion for the full financial year.
- Who
- Oracle employees, including workers in India; Oracle CFO Hilary Maxson and co-chief executive Mike Sicilia addressed staff.
- What
- Oracle has started another round of workforce reductions while expanding its AI and cloud infrastructure operations.
- Where
- The latest reported notices were issued in India, following earlier cuts in the United States; some Oracle Financial Services Software employees outside India were also reportedly affected.
- When
- The latest India cuts follow U.S. layoffs that began September 14; the company reported the financial-year headcount reduction for the year ended May 31, 2026.
- Why
- Oracle is restructuring, controlling costs, and shifting resources toward cloud and AI priorities while investing heavily in infrastructure.
Workforce concerns
Oracle’s restructuring rationale
Why cut jobs during rapid growth?
Workforce concerns
Employees and observers may question why layoffs are occurring while Oracle reports strong cloud growth and major AI demand.
Oracle’s restructuring rationale
Oracle’s reported rationale centers on organizational restructuring, cost control, and moving resources toward cloud and AI priorities rather than claiming that AI investment alone caused the cuts.
Effect on remaining employees
Workforce concerns
A smaller workforce can raise concerns that remaining employees will be expected to absorb substantially more work.
Oracle’s restructuring rationale
CFO Hilary Maxson said Oracle should not operate on the principle of “doing more with less,” emphasizing simpler processes, higher-impact priorities, and more selective use of employee time.
Key facts
- Estimated India impact
- About 3,000 employees according to some reports; Oracle has not confirmed the figure.
- Reported workforce reduction
- Global headcount fell by about 21,000 employees, or 13%, to roughly 141,000.
- Quarterly capital expenditure
- $28.5 billion in Oracle’s first quarter of fiscal 2027, up from $8.5 billion a year earlier.
- Full-year capital expenditure forecast
- $90 billion to $95 billion.
- AI cloud contracts
- More than $30 billion in additional AI cloud contracts were reported during the quarter.
- Cloud infrastructure revenue
- $7.4 billion, up 121% year over year.
- Total revenue
- $19.3 billion, up 30% year over year.
Quotes
Mike Sicilia
Oracle co-chief executive officer
“How does the work that I’m doing help deliver a better outcome for a customer?”
firstpost.com
Sources
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