Large-scale layoffs by tech giant Oracle have shocked employees globally. The company has laid off up to 30,000 employees worldwide, with India among the worst-affected countries. In India alone, about 12,000 employees have been affected. Although the company has not officially confirmed the figures, this decision is being seen as a major strategic change, in which the focus is being increased on Artificial Intelligence (AI) and data center.
Oracle has recently signed a big deal worth about $156 billion to build an AI data center, which is said to be mainly for OpenAI. Under this project, the company will have to purchase about 30 lakh special chips.
Spending on AI infrastructure has increased rapidly. While two years ago it was around $6.9 billion, now it has increased to around $50 billion. To balance this huge investment, the company has made cuts in other areas, especially the workforce.
Oracle is said to have a debt of more than $108 billion, which has increased the financial pressure on the company. According to analysts, through layoffs the company can save $8 to $10 billion in cash, which will be invested in AI and data center projects. The company also announced a $2.1 billion restructuring plan in March, of which about $1 billion had already been spent.
Concern has also increased among investors and lenders about Oracle’s financial condition. The cost of corporate debt insurance has reached levels seen during the 2009 financial crisis. Barclays also downgraded Oracle’s debt to near “junk” category. Some banks have started distancing themselves from providing funding for these projects, which has increased the pressure on the company.
Questions are also being raised regarding the demand for AI data center projects. According to reports, OpenAI is now considering newer and faster chips from NVIDIA. This creates a risk that Oracle’s existing infrastructure may not be fully utilized. Rapidly changing technology causes chips and systems to become obsolete quickly, creating uncertainty about returns on large investments.
Oracle’s shares rose nearly 6% on the day news of the layoffs broke and the company reported its highest quarterly revenue in 15 years at $17.2 billion. However, the stock has seen a decline in the long run. It has fallen from the level of $346 in September 2025 to around $146. This decline has also affected the wealth of company founder Larry Ellison.
Oracle is now moving rapidly away from traditional business towards AI and cloud infrastructure. However, this change is coming at a cost in the form of employees’ jobs. Overall, this layoff of the company is considered to be a part of cost control, debt management and future technology investment strategy, but it has also created an environment of insecurity and uncertainty among the employees.
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