Oracle, one of the world’s largest software firms, has laid off nearly 10% of its Indian workforce, impacting thousands across Bengaluru, Hyderabad, Chennai, Pune, Noida, and Kolkata. Employees from software development, cloud services, and customer support teams were hit the hardest. Many were caught off guard, with uncertainty surrounding severance packages and career transition support.
The Timing Raises Questions
The timing of the layoffs has drawn significant attention. Days before the announcement, Oracle CEO Larry Wilson met with US President Donald Trump at the Oval Office, where discussions reportedly focused on domestic hiring, data security, and reducing offshoring. Soon after, Oracle revealed a major deal with OpenAI, strengthening its infrastructure role in AI-powered projects.
Global Impact Beyond India
While India may have been the worst hit, it is not the only region affected. Layoffs have also been reported in the US, Canada, and Mexico. In Seattle alone, more than 150 employees were let go, while Mexico may face job cuts on a scale comparable to India. This suggests a larger global restructuring strategy rather than a region-specific move.
AI Investments Drive Restructuring
Industry analysts link the layoffs to Oracle’s aggressive push into artificial intelligence. Its $500 billion “Stargate” project with OpenAI and SoftBank requires massive data centre infrastructure in the US, estimated at 4.5 gigawatts of power. To offset costs, Oracle appears to be trimming roles outside core AI initiatives, aligning with a broader industry trend where Microsoft, Amazon, and Meta have also reduced headcounts.
Implications for India
India has been a strategic hub for Oracle for more than two decades, with expansion into Tier-II and Tier-III cities. The recent cuts, however, could impact employee morale and raise questions about the country’s role in the company’s long-term plans. At the same time, Oracle continues to selectively hire in the US, highlighting a shift in focus rather than a hiring freeze.
