Monday, August 18, 2025

AI Expansion Drives Major Layoffs at Oracle India

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Oracle Corporation has laid off approximately 10% of its workforce in India, marking one of the most significant reductions in headcount by the tech giant in recent years.

The move is part of a broader global restructuring strategy aimed at reallocating resources toward artificial intelligence (AI) infrastructure and domestic hiring in the United States.

The layoffs, which reportedly occurred overnight, have impacted employees across Oracle’s offices in Bengaluru, Hyderabad, Chennai, Mumbai, Pune, Noida, and Kolkata, with several skilled professionals receiving termination notices without prior warning.

India, which hosts over 28,000 Oracle employees, has long been a critical hub for the company’s software development, cloud services, and technical support functions.

The scale of the layoffs has raised concerns about the future of offshore operations and the shifting priorities of multinational tech firms.

Oracle Layoffs Official Reason: Restructuring for Strategic Realignment

Oracle has officially described the layoffs as part of a “restructuring” initiative.

However, industry analysts suggest that the decision is closely tied to Oracle’s recent $500 billion investment in AI infrastructure and its landmark partnership with OpenAI.

Under the deal, Oracle will process vast volumes of OpenAI’s data, requiring significant expansion of domestic data center capacity.

The timing of the layoffs has also drawn attention to Oracle CEO Larry Wilson’s recent meeting with U.S. President Donald Trump, where discussions reportedly focused on domestic hiring, national data security, and reducing reliance on H-1B visa holders.

Global Impact: Cuts Extend Beyond India

India has been among the hardest-hit regions in Oracle’s recent round of layoffs.

In the United States, the company has also cut over 150 roles within its Seattle-based Oracle Cloud Infrastructure (OCI) division.

Employees in Canada and Mexico have reportedly received layoff notices. Industry sources suggest that further workforce reductions may be imminent in additional regions.

In Mexico, insiders suggest that the scale of layoffs could be comparable to those seen in India.

Meanwhile, Oracle is hiring aggressively at its Virginia office, indicating a shift in geographic focus.

Local Talent Pool Faces Uncertainty

The sudden job losses have created widespread uncertainty within India’s IT workforce.

This is especially concerning given Oracle’s longstanding presence and its recent expansion into Tier-II and Tier-III cities such as Chandigarh, Lucknow, Jaipur, Bhopal, and Thiruvananthapuram.

These regions were part of Oracle’s geo-expansion strategy aimed at tapping into emerging talent markets.

While Oracle continues to hire for select roles, the layoffs appear to be targeted and performance-linked, according to internal sources.

However, many believe the restructuring is also influenced by geopolitical dynamics and pressure to localize operations in key markets.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus