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Oracle has joined TCS and other tech behemoths in one trend. This company has laid off more than 150 employees in its high-profile cloud division, primarily in Seattle. According to reports, these job cutdowns are part of a broader strategy to mitigate rising costs from aggressive investment in artificial intelligence infrastructure.
While insider reports claim some job cuts are the result of performance-related issues, the cloud unit continues to hire selectively, which indicates a measured strategic reshuffle rather than a broad cutback. Interestingly, this move coincides with Oracle’s $500 billion ‘Stargate’ AI infrastructure initiative and its record-breaking deal of supplying 4.5 gigawatts of data center power to OpenAI.
Performance-based job cuts are common in the industry. However, Oracle seems to be joining the news trend of job cuts to boost AI infrastructure. As of now, the company has provided no official statement about these job cuts. However, back in June 2025, the tech giant mentioned that it reshapes its workforce periodically according to the strategy shifts.
The statement reads, “These types of restructurings have resulted, and may in the future result, in increased restructuring costs and temporarily reduced productivity while employees adjust to the restructuring.”
Despite no solid evidence, reports indicate that the root cause of these Oracle layoffs is the requirement for funds. Last month, this company secured a record-breaking agreement with OpenAI, where OpenAI will rent significant computing capacity from Oracle’s facilities. Still, Oracle also has to invest $500 billion in AI infrastructure. This indicates a desperate need for large amounts of funds for the company, which critics think is the most prominent reason behind this bold step.
With this move, Oracle joined a broader industry move, where big companies are constantly driving their resources toward artificial intelligence. Last month, TCS laid off employees. Microsoft has already trimmed around 15,000 jobs this year. Even Meta and Amazon have been cutting down headcounts to invest more in AI infrastructure.
These moves highlight a collective industry trend: betting heavy on AI, even though it comes at the cost of workforce downsizing in other non-core or underperforming areas. The OpenAI deal places Oracle as a dominant player in the AI race, but at the same time, it brings pressure of financial investment, and according to some experts, in the quarter ending in May, this company spent more than it earned, highlighting why the workforce reduction was required.
Also Read: Principal Database Engineer - Performance Tuning, Oracle
The rise of artificial intelligence has been making lives easier, but this comfort comes at an expense. These back-to-back cutoffs show a growing tension in this age of AI, where companies have been chasing next-gen AI capabilities. Still, they sideline human capabilities without any hesitation. Tech layoffs that are often labeled as performance-related may have a different story under them. These are probably part of cost-saving rationales tied to AI infrastructure spending.
Further, the negative impact of this AI era extends beyond the displacement of jobs. It shakes the workplace morale and trust in corporate loyalty and raises questions about the long-term consequences for skill retention in technology sectors.
