Oracle India Layoffs: 10% Workforce Cut as Cloud Giant Restructures Amid AI Push

tl;dr

Oracle has laid off around 10% of its workforce in India this month. That translates to several thousand jobs. The company calls it a “restructuring exercise,” but insiders say it ties into a bigger shift in global priorities.

The news comes as a shock because Oracle India has long been one of the company’s largest engineering hubs. It also highlights a growing trend in tech, where companies are cutting jobs in some regions while expanding in others.

Cloud Teams Among the Hardest Hit

Reports suggest the layoffs are centered around Oracle Cloud Infrastructure (OCI). Teams working on Enterprise Engineering, Fusion ERP applications, data center operations, and even AI/ML units were impacted.

Oracle has offices in Bengaluru, Hyderabad, Chennai, Pune, Mumbai, Noida, and Kolkata. These offices employ thousands of engineers. With Oracle India’s headcount hovering around 28,000–29,000, the 10% cut likely means close to 2,800 jobs lost.

Employees described sudden meetings and abrupt notices. Many said they were told their roles had been eliminated, without much explanation beyond “restructuring.”

Why Now?

Oracle says the cuts are part of restructuring. The company regularly reshapes teams when priorities shift. In filings earlier this year, it mentioned that reorganizations can incur costs and slow down projects in the short term.

But analysts believe there is more to it. Some link the timing to U.S. political pressure. Earlier this month, Oracle executives met with former U.S. President Donald Trump. The meeting reportedly touched on tech jobs and national security. Around the same time, Oracle started hiring in Nashville and Virginia while cutting jobs in India.

Others point to rising costs in building AI infrastructure. Oracle is investing heavily in data centers and in partnerships with companies like OpenAI. Those billions have to come from somewhere, and older teams or less profitable units are usually the first to go.

A Bloomberg report summed it up well. These layoffs are about controlling costs while doubling down on AI.

A Pattern of Global Layoffs

This is not the first round of Oracle cuts. In March 2025, thousands of jobs were trimmed globally. In November 2024, hundreds of cloud engineers were let go.

The current layoffs span India, the United States, Canada, and Mexico. In Seattle alone, more than 150 OCI engineers were told to leave this month. Some European offices are also bracing for cuts.

Despite this, Oracle’s business is doing well. Its cloud revenue grew 52% year-on-year last quarter, reaching $3 billion. The stock has climbed nearly 50% this year. Oracle is cutting jobs not because of weak demand, but because it wants to reallocate resources.

At the same time, Oracle is “aggressively hiring” for roles linked to its AI cloud strategy. The company recently signed a multi-billion dollar deal to host OpenAI workloads. That project alone requires massive infrastructure and staffing.

India’s Place in Oracle’s Strategy

India is central to Oracle’s global operations. With nearly 30,000 employees, it accounts for a big share of Oracle’s total workforce of about 162,000. Teams in India handle product engineering, customer support, and cloud operations.

This round of layoffs is therefore a major shake-up. Thousands of skilled engineers and project managers are suddenly looking for work. Many are posting on LinkedIn about being part of “restructured” OCI teams.

The local IT ecosystem is feeling the ripple effect. Other global firms may hesitate to expand in India if they see Oracle pulling back. On the flip side, rival companies and Indian IT services giants could absorb this talent. Cloud and AI engineers are still in demand, even if Oracle is trimming.

Oracle itself is not abandoning India. It has been expanding into tier-two cities like Jaipur and Lucknow as part of a broader hiring strategy. It continues to advertise open roles. What seems likely is a shift in the kind of jobs it wants in India, possibly focusing more on cost-efficient roles or fresh talent.

Big Tech’s Efficiency Wave

Oracle’s move mirrors what other tech giants are doing. Microsoft, Google, Meta, Amazon, and Intel have all announced layoffs in the past year. These are not signs of collapse. They are signs of companies tightening belts while betting big on AI.

The story is familiar. For years, tech companies hired aggressively. Now they are trimming, even as profits stay high. The goal is efficiency.

For Oracle, that means cutting some roles in India and the U.S. while expanding into AI-heavy areas. For employees, it means uncertainty. Severance packages are reportedly being offered, though details vary. Some employees described the news as “out of the blue on a Monday morning.”

The Bigger Picture

Larry Ellison has been clear about Oracle’s future. The company wants to be one of the leaders in cloud and AI. That requires bold bets and painful cuts.

Moving headquarters to Texas was one such move. Partnering with OpenAI was another. Now, trimming jobs in India may be the latest adjustment.

The layoffs sting. But Oracle is not retreating from India. The company still relies heavily on its Indian workforce. What is changing is where it invests and how it distributes its teams.

For employees, the disruption is real. For Oracle, it may just be part of a long game to stay relevant in the AI era.