Oracle Layoffs: Oracle Corp Cuts Over 150 Jobs in Cloud Unit Amid AI Investments Surge, Says Report
In a bid to control costs amid soaring investments in artificial intelligence (AI) infrastructure, Oracle Corp. has reportedly cut over 150 jobs in its cloud infrastructure division, according to media reports. Employees in the Oracle Cloud Infrastructure (OCI) unit were informed this week about the eliminations, with major reductions in Seattle, the hub of the unit, and additional cuts in India.
Mumbai, August 14: In a bid to control costs amid soaring investments in artificial intelligence (AI) infrastructure, Oracle Corp. has reportedly cut over 150 jobs in its cloud infrastructure division, according to media reports. Employees in the Oracle Cloud Infrastructure (OCI) unit were informed this week about the eliminations, with major reductions in Seattle, the hub of the unit, and additional cuts in India. While some roles were axed due to performance-related issues, the company is still hiring for positions that align with its AI-focused growth strategy.
As reported by Bloomberg, the latest layoffs come as Oracle joins other tech giants in trimming certain parts of their business to offset the massive costs of building AI capabilities. Microsoft has cut around 15,000 jobs this year, while Amazon and Meta have also reduced headcount to redirect resources toward AI development. Oracle’s approach appears to be a targeted restructuring, replacing some roles with new hires whose expertise better supports the company’s expanding AI infrastructure. Amdocs Layoffs: Israel-Based Tech Giant Plans to Cut Hundreds of Jobs to Adopt AI and Establish New GenAI & Data Division, Says Report.
The company’s cloud division remains a key growth driver, with Oracle recently securing a landmark deal with OpenAI to supply 4.5 gigawatts of US data centre capacity as part of the USD 500 billion Stargate initiative. This partnership is aimed at meeting the soaring demand for computing power needed to train and deploy large AI models. Oracle’s Q4 FY25 results reflected this momentum, with total revenue rising 11% year-on-year to USD 15.9 billion, cloud revenue climbing 27% to USD 6.7 billion, and OCI revenue surging 52% to USD 3 billion. TCS Layoffs: ‘Tata Consultancy Services Forced Me To Resign in 15 Minutes, HR Told Me To Switch Off My Phone’, Claims Fresher Affected by Job Cuts.
Despite these strong numbers, Oracle faces tens of billions in upcoming expenses to expand its server farms and keep pace with rivals like Amazon Web Services, Microsoft Azure, and Google Cloud. The company’s free cash flow turned negative in the fiscal year ending May, highlighting the pressure to manage operational costs while funding ambitious AI projects. For Oracle, the restructuring follows a similar layoff round in November 2024, which also affected hundreds of OCI employees.
(The above story first appeared on LatestLY on Aug 14, 2025 09:28 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).