Are AI-based investments intrinsically tied to job cuts? The trends do suggest a connection, as Oracle is next in line to announce layoffs, allegedly as a means to fund its participation in a $500 billion AI joint venture and set up new AI cloud infrastructure. New reports have revealed that Oracle is conducting layoffs at its US cloud unit, as well as making cuts to its operations in India and Canada. The company is also believed to be hiring significant numbers to support its AI data center expansion, so there are still work opportunities to be found at the organization, however, the cuts have largely been a matter of discussion and disappointment for many.
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Oracle Layoffs Expand to India, US, and Canada
New reports have revealed that Oracle is exploring a vast expansion of its business into the realm of AI, and to this end, the company is participating in Stargate, a $500 billion joint venture AI infrastructure project in collaboration with OpenAI and SoftBank. The company secured a $30 billion-a-year deal with OpenAI and has also closed major contracts with TikTok and Temu that set the business up for major success as a top cloud provider. While the company shares are skyrocketing, employees have not been on the receiving end of good news.
While the exact scale of the Oracle layoffs has not been shared just yet, there are reports of cuts emerging across the business’ global operations. Apart from operations in India, the US-based Oracle Cloud Infrastructure (OCI) teams are expected to be hit the hardest. According to reports from DatacenterDynamics, Oracle’s cloud business cuts will affect the Enterprise Engineering division, Fusion ERP, technical project managers for the AI/ML team, data center operations technicians, and sections of the OCI AI team.
In addition, GeekWire reported that the company filing with the Washington state Employment Security Department has stated 161 workers in Seattle will be affected by the cuts, which is a significant number considering the 400+ employees it is said to employ in the region. The Oracle job cuts in 2025 have been tied to performance issues rather than an exclusive demand for AI spending, but the ultimate goal does appear to be an expansion in its artificial intelligence capabilities and infrastructure.
The Cloud Layoffs at Oracle are Balanced By Some Hiring Efforts
While Oracle’s cloud cuts are at the center of the conversation, in a June regulatory filing, the company highlighted that regular reorganization efforts were par for the course as a result of aspects like strategy changes and performance considerations. “These types of restructurings have resulted, and may in the future result, in increased restructuring costs and temporarily reduced productivity while employees adjust to the restructuring,” the company had explained.
As a result, the cloud layoffs at Oracle don’t appear to be a major downsizing effort to cut costs entirely, but more a result of the company’s shifting focus and desire to hire fresh talent. The company website still has 235 open roles that it appears to be hiring for in Seattle, where the cuts have been formally confirmed, and 1396 job postings overall across the US. This includes hiring for cloud roles, which suggests the business is still looking to fill its payroll with newer workers.
Investments In AI Are Among the Top Causes of Layoffs This Year
Layoffs have been announced across the country for a mixed bag of reasons, but AI-based cuts have echoed through office halls, bringing a great sense of foreboding with it for many. From Microsoft to Intel, and Amazon to Meta, workforce reduction and reorganization plans have been accompanied by reports of additional investments in AI, adding to employee fears regarding the trending technology.
There have been some reassurances that AI will not eliminate jobs entirely, however, the technology is reshaping how we operate, forcing workers to pick up new skills or resign themselves to job hunting once more.
As for Oracle’s cloud business cuts, the work is far from done. While the OCI unit’s business prospects continue to flourish, there is much work to be done in expanding its data center capabilities, particularly to support the deal made with OpenAI. The multibillion-dollar commitments will require additional employee support networks to operate, and could eventually result in considerable job creation.
How Oracle handles its workforce in the coming months could largely determine how operations proceed, and as always, it is in the company’s best interest to ensure that retention strategies and active, competitive hiring balance its ongoing job cuts.
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