Oracle Corporation has laid off more than 150 employees from its cloud division, primarily in the Seattle area, as part of a broader effort to manage costs associated with its growing investments in artificial intelligence (AI) infrastructure.
The layoffs, confirmed by multiple reports, were communicated to affected employees earlier this week and are part of a series of strategic adjustments aimed at balancing operational efficiency with long-term growth.
While Oracle has not publicly disclosed the full scope of the reductions, sources indicate that the cuts impacted teams across Oracle Cloud Infrastructure (OCI), including Enterprise Engineering, Fusion ERP, data center operations, and technical project management roles within the AI/ML team.
AI Investments Drive Restructuring
The layoffs come as Oracle continues to invest heavily in building out its AI capabilities, including large-scale data center infrastructure.
In June, the company signed a landmark agreement with OpenAI to provide approximately 4.5 gigawatts of data center capacity in the United States—a move that underscores the scale of Oracle’s commitment to supporting generative AI workloads.
These investments, while positioning Oracle as a key player in the AI space, have placed pressure on its financials.
The company reported negative free cash flow for the fiscal year ending in May, largely due to capital expenditures tied to server farm expansion and cloud infrastructure development.
Oracle Seattle Hub Impacted as Focus Shifts to Tennessee
Seattle has long served as a central hub for Oracle’s cloud operations, but the company has been gradually shifting its focus to Tennessee following its headquarters relocation to Nashville last year.
Oracle currently lists more job openings in Tennessee than in any other state, suggesting a strategic realignment of its workforce and operational centers.
Despite the layoffs, Oracle continues to hire for select roles in its cloud division, particularly in locations aligned with its evolving infrastructure strategy.
Some of the job cuts were reportedly linked to performance reviews, though the company has not issued an official statement on the matter.
Industry-Wide Trend of Cost Rationalization
Oracle’s decision mirrors similar moves by other major technology firms grappling with the rising costs of AI infrastructure.
Microsoft has cut approximately 15,000 jobs this year, while Amazon and Meta have also implemented significant workforce reductions.
These actions reflect a broader industry trend of reallocating resources toward AI and cloud growth while trimming expenses in other areas.
In a June filing, Oracle noted that workforce changes may result from “strategy changes, reorganizations, or performance management,” and acknowledged that such restructurings can temporarily reduce productivity as teams adjust.
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