Oracle has begun layoffs in California, with around 700 employees set to lose their jobs by June as part of a broader global restructuring driven by AI investments and cost optimization. Earlier, Oracle had announced 30,000 job cuts across the company, marking the biggest round of tech layoffs in the last 12 months.
The Oracle layoffs, announced in late March, will affect approximately 700 workers across California, according to a report by The New York Post. These workers, part of the broader Oracle layoffs that affected around 30,000 people, are expected to lose their jobs by 1 June.
According to the report, Oracle detailed which employees have been affected due to the layoffs in California. The company will cut 310 workers in Redwood City, 184 in Santa Clara, 158 in Pleasanton, and 50 in Santa Monica. Moreover, 491 workers at Oracle's Seattle offices will be laid off as part of broader job cuts.
Oracle communicated the decision via an early morning email to its employees. “After careful consideration of Oracle's current business needs, we have made the decision to eliminate your role as part of a broader organizational change,” the notification sent to affected employees read, mentioned the report. “As a result, today is your last working day,” it read.
The job cuts are part of a "reduction in force and other terminations," Oracle said, adding that its Seattle sites will remain open. The company had about 162,000 full-time employees globally as of May 2025.
At the heart of the restructuring is Oracle’s $300 billion, five-year cloud infrastructure deal with OpenAI, signed in July 2025. To meet its commitment to build 4.5 gigawatts of AI data centre capacity, Oracle has pushed annual capital expenditure to nearly $48 billion, financed largely through debt exceeding $100 billion.
A Business Insider report said that the laid-off employees in the USA will receive four weeks' base salary, plus one week of severance for each additional year of employment.
Oracle reported its best organic growth quarter in 15 years in early 2026 ($17.2B in revenue, up 22%). Its net income grew by 95% to $6.13 billion. Cloud infrastructure revenue also soared by 84%. The company’s contracted revenue reached $553 billion, up 325%. The company aims to generate $8-10 billion in cash flow from layoffs to fund AI infrastructure.
Also Read: Oracle Layoffs Impact Thousands as AI Push Intensifies; Stock Jumps 6% on Cost Discipline Signal
Tech industry layoffs in early 2026 have surpassed 50,000-70,000 in the first quarter alone. This surge in layoffs, led by major companies like Oracle, Amazon, and Meta, is driven by a strategic pivot toward AI and a push for operational efficiency.
The ongoing wave of tech layoffs reflects a broader industry shift toward efficiency and AI-driven transformation. Companies are restructuring to prioritize automation and profitability, which signals a long-term change in workforce dynamics across the global technology sector.