Oracle India has laid off over 100 employees as part of a broader global workforce reduction, with the company shifting resources toward artificial intelligence (AI) initiatives. The move, confirmed on 9 September 2025, reflects growing structural changes in the global tech sector.
A Targeted Restructuring Focused on Cloud and AI
Oracle’s job cuts in India have predominantly affected teams in Oracle Cloud Infrastructure (OCI) and Oracle Financial Services Software (OFSS). According to multiple reports by The Economic Times, Moneycontrol, and HRKatha, employees were informed of the layoffs in early September, receiving severance packages ranging from two months’ pay to 15 days’ salary per year of service.
This restructuring is part of a broader trend within Oracle Corporation’s global operations. The company is reallocating capital and talent toward AI-based services and infrastructure, particularly generative AI applications and data center expansions.
“This is a strategic workforce realignment to better support our investments in AI and next-generation cloud services,” an Oracle spokesperson told Moneycontrol.
Global Cuts Exceed 3,000 Jobs
The layoffs in India are part of a larger global workforce reduction affecting more than 3,000 roles across North America, Asia-Pacific, and Europe. Reports from The Times of India and Business Insider suggest these cuts span product engineering, sales, and customer success teams.
Affected employees, including some with long tenures at Oracle, described receiving “business update” meeting invites followed by short, impersonal video calls informing them of the decision.
“I was laid off in under 20 minutes over Zoom,” one impacted employee told The Financial Express, adding that entire teams were disbanded with little advance warning.
Strategic Shift Towards Generative AI
Oracle’s decision to reduce headcount comes as the company increases its investment in AI-driven services. The firm is building partnerships with large language model providers and enhancing its Oracle Cloud capabilities to serve growing demand for AI model training, inferencing, and high-performance computing (HPC) workloads.
This shift aligns with a broader industry trend. Tech companies, including Microsoft, Meta, Google, and Amazon, are redirecting resources toward AI development—frequently at the expense of older or slower-growing business lines.
“Tech firms are undergoing a second wave of restructuring, this time centered on AI readiness rather than post-pandemic overhiring,” said Dr. Anya Sharma, senior analyst at the Centre for Digital Economy Research, Jawaharlal Nehru University.
Impact on India’s Tech Workforce
India’s role as a global tech talent hub makes it vulnerable to shifts in international business strategy. While Oracle has not disclosed the exact number of positions it intends to cut in India, internal sources suggest that more layoffs may follow in the coming months, particularly within enterprise sales and product engineering.
The news adds to growing unease in the Indian IT and SaaS sector. According to Layoffs.fyi and Inc42, more than 15,000 tech jobs in India have been eliminated since January 2025, with over 62,000 globally across 284 companies.
“This is no longer about excess hiring during COVID—it’s about structural evolution,” noted Rajesh Khurana, a labour economist at the Indian Institute of Management Ahmedabad. “Indian professionals in global roles must now rapidly upskill for AI-era demand.”
Oracle’s Previous Layoffs and Financial Pressures
This is not Oracle’s first major layoff wave in 2025. In August, the company cut over 150 jobs in its U.S. cloud division. Oracle has cited rising operational costs and a need to rebalance its cloud portfolio as core reasons for the layoffs.
In recent earnings calls, Oracle CEO Safra Catz acknowledged margin pressure and the need for faster turnaround on AI service monetisation. The company reported slower-than-expected revenue growth in Q2 2025, despite a strong performance in license support and cloud infrastructure.
Government, Labour Groups Yet to Respond
At the time of writing, neither the Ministry of Labour and Employment nor leading labour unions such as NASSCOM have issued official responses to the layoffs. India’s employment regulations permit layoffs in multinational subsidiaries with relatively few disclosure requirements, though broader industry impact is being closely monitored.
Outlook: A Precursor for Further Tech Realignments?
Oracle’s India layoffs mark a clear signal that AI restructuring is becoming the new axis for corporate workforce decisions. Analysts anticipate further recalibrations across the tech ecosystem as AI maturity outpaces traditional software deployment models.
For India’s skilled IT labour force, this means a transition toward AI engineering, cloud-native architecture, and data science roles will be imperative. While painful in the short term, such structural shifts could reshape India’s long-term relevance in the global technology landscape.
