ISLAMABAD: Tech giant Oracle has reportedly laid off up to 30,000 employees worldwide as part of a sweeping restructuring effort linked to its growing focus on artificial intelligence infrastructure.
According to reports, affected staff across the United States, India, Canada, Mexico and other regions received termination emails from “Oracle Leadership” early Tuesday morning, marking what could be the largest workforce reduction in the company’s history. Local media indicated that around 12,000 employees in India alone were impacted.
The termination notices cited “broader organisational change” as the reason behind the cuts, widely interpreted as a shift towards funding large-scale AI data centre expansion. “After careful consideration of Oracle’s current business needs, we have made the decision to eliminate your role as part of a broader organisational change. As a result, today is your last working day,” the email reportedly stated.
AI boom
Employees were also informed: “After signing your termination paperwork, you will be eligible to receive a severance package subject to the terms and conditions of the severance plan,” while access to company systems would be revoked shortly after.
The layoffs come despite Oracle reporting strong financial performance, with quarterly revenue rising 22% year-on-year to $17.2 billion and cloud infrastructure revenue surging 84% to $4.9 billion. However, investor concerns have mounted over the company’s rising debt and reliance on key clients.
Oracle’s stock has fallen sharply, dropping 57% from its peak last September, making it the most affordable since the AI boom began in early 2023.
Broader market pressures, including geopolitical tensions and rising oil prices, have further weighed on sentiment.
AI-focused infrastructure
The company has been aggressively investing in AI-focused infrastructure, operating highly automated data centres equipped with advanced graphics processing units (GPUs).
These facilities enable businesses to access scalable computing power, including clusters exceeding 131,000 GPUs, while benefiting from faster processing and reduced costs.
“Demand for AI infrastructure, both GPU and CPU, continues to exceed supply. This is directly visible in our $553 billion remaining performance obligations,” Oracle chief Clay Magouyrk said in a recent earnings call.
Analysts suggest the job cuts could generate up to $10 billion in additional free cash flow, as Oracle positions itself to compete in the rapidly evolving AI sector.
