Oracle and Salesforce have announced significant layoffs across their U.S. operations, eliminating more than 700 positions in California’s Bay Area and the Seattle region.
The cuts, described as permanent, are scheduled to take effect around November 3, 2025.
These layoffs are part of broader restructuring efforts aimed at realigning resources toward high-growth areas such as cloud services and artificial intelligence (AI).
In California, Salesforce is cutting 262 jobs in San Francisco, while Oracle is eliminating 254 roles across Redwood City, Pleasanton, and Santa Clara.
In Washington, Salesforce will lay off 93 employees from its Bellevue and Seattle offices, and Oracle will reduce its headcount by 101 positions.
Strategic Shift Toward AI and Cloud Services
Both companies have framed the layoffs as necessary steps to streamline operations and invest in emerging technologies.
A Salesforce spokesperson stated, “We continuously assess our structure and rebalance as needed to best serve our customers and fuel growth areas”.
Salesforce has recently deployed its AI-powered help.agentforce.com platform, which has reduced support case volumes and led to a decreased need for support engineers.
The company redeployed some employees to roles in sales and customer success, but it deemed hundreds of positions redundant.
Oracle has not publicly detailed the specific rationale behind its cuts but has indicated that the restructuring is intended to focus resources on strategic priorities, particularly within Oracle Cloud Infrastructure (OCI) and AI-driven solutions.
Broader Industry Trends: Layoffs Continue Across Tech Giants
The layoffs at Oracle and Salesforce are part of a wider trend in the tech industry, which has seen repeated workforce reductions since 2022.
Oracle has already laid off 744 employees in the Bay Area over the past three years, while Salesforce has cut more than 1,450 positions in the same region.
Other major players—including Microsoft, Amazon, T-Mobile, and F5—have also announced significant job cuts in 2025.
Microsoft alone has laid off over 15,000 employees globally since May, while investing more than $80 billion into AI infrastructure.
Industry analysts attribute the downsizing to a combination of factors: the post-pandemic hiring surge, rising operational costs, and the capital-intensive nature of AI development.
Companies are increasingly phasing out traditional roles in software development, infrastructure, and support as they pivot toward automation and cloud-based services.
Impact on Oracle and Salesforce’s Employees and Local Economies
The layoffs have affected a wide range of roles, including cloud infrastructure engineers, software developers, marketing professionals, and corporate staff.
Some managers have offered internal transfers to employees, but many now face job loss with limited clarity on their future prospects.
Tech companies have particularly impacted the Bay Area and Seattle, which have long served as major employment hubs.
Local economies that rely heavily on tech sector employment may face ripple effects, including reduced consumer spending and increased competition for remaining roles.
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