- Oracle begins global layoffs across cloud units; India reportedly most affected while totals remain undisclosed.
- Teams hit include OCI Enterprise Engineering, Fusion ERP, data center operations, AI/ML project management and the broader OCI AI group.
- Reductions align with cost control amid heavy AI infrastructure spending; hiring continues for AI data centers.
- Context includes reported OpenAI capacity deal, wins with TikTok/Temu, and strong OCI growth in recent results.
Oracle has begun another round of job cuts within its cloud organization, with multiple reports describing a large number of roles eliminated across several regions. The scope is still taking shape, but sources say notifications went out to employees in key cloud and AI-focused groups.
India is reportedly heavily impacted, alongside the United States, and employees in other countries have manager meetings scheduled later this week—signs that additional local actions may follow. While the company has not disclosed totals, affected staff were told their positions were eliminated.
Scope, timing and where the cuts are landing
According to Data Center Dynamics and other outlets, the reductions are centered in Oracle Cloud Infrastructure (OCI) and adjacent functions. Workers in the U.S. and India were among the first notified, with additional regions expecting updates later in the week.
People familiar with the matter describe the action as global but targeted, citing a mix of performance-related decisions and restructuring moves. Communication to staff indicated the company is realigning resources to match its priorities.
Market reaction has been nuanced: Oracle shares have hovered near record highs on cloud momentum, even as the company reins in costs to support sizable AI infrastructure investments, as reported by Bloomberg.
Oracle has not provided an official headcount for this round, and requests for comment were pending at publication time. It remains una situación en desarrollo con actualizaciones adicionales esperadas a medida que se consolidan los planes regionales.
Teams impacted and the strategic context behind the cuts
Reports indicate that the cuts span several groups: OCI Enterprise Engineering, the Fusion ERP team, data center operations and site reliability roles, technical project managers supporting AI/ML work, and the broader OCI AI organization.
Even as these roles are eliminated, sources say the company is aggressively hiring for AI data center expansion, suggesting a reallocation of spending rather than a retreat from cloud. Some departures are tied to performance considerations, but the central theme is shifting headcount toward priority AI infrastructure.
Oracle’s AI posture is underpinned by major customer commitments. Multiple reports describe OpenAI procuring significant capacity connected to its “Stargate” effort—involving roughly 4.5 GW of data center power and long-horizon infrastructure plans—while separate coverage has referenced a deal valued around $30 billion per year. Terms have not been formally detailed by the companies.
Beyond OpenAI, Oracle has notched cloud wins with TikTok and Temu, bolstering utilization for its infrastructure platform and aiding the company’s OCI growth trajectory.
Recent results highlight the business importance of these areas: Oracle reported $15.9 billion in quarterly revenue, with total cloud revenue up 27% to $6.7 billion, and OCI revenue up 52% to $3 billion. That backdrop helps explain why the company is seeking cost discipline while scaling AI capacity.
