oracle: Oracle layoffs: Oracle cuts over 150 cloud division jobs amid surge in AI spending - The Economic Times

Oracle is laying off staff from its cloud division as it looks to cut costs while continuing to invest heavily in AI infrastructure, Bloomberg has reported.

Oracle layoffs: Details

According to the report, more than 150 roles have been cut in the Seattle area, a key base for Oracle’s cloud operations. Affected employees were informed this week that their jobs were being eliminated. Some of the layoffs were linked to performance, which is why the company is still hiring within the units.

The US and India are the first to be affected, according to Datacenter Dynamics, a data centre news outlet, which first reported the layoffs. However, employees in other regions have been called to unspecified meetings with managers later in the week, a sign that job cuts in other areas may be coming.

Oracle, which announced last year that it would move its headquarters to Nashville, now has more job openings in Tennessee than in any other state, the report stated.

In a regulatory filing from June, Oracle stated that it makes workforce changes from time to time due to strategy shifts, reorganisations, or performance issues. “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.”

Layoffs: A trend in tech

Many large tech firms are cutting costs in certain areas to manage the high expenses tied to AI development. Microsoft has let go of around 15,000 employees this year.

Just last month, Amazon laid off several hundred workers from its Amazon Web Services (AWS) cloud unit. Chipmaker Intel also said in a recent filing that it plans to cut over 5,500 jobs across multiple US states.