Layoffs hit Oracle Cloud teams in US, India, and Canada

Oracle is making staff reductions in its cloud division to manage costs while investing heavily in AI infrastructure.

Employees were informed this week that some positions had been eliminated, with layoffs related to performance. However, hiring is ongoing in certain areas of the unit.

India is experiencing significant job cuts, while teams in the US are still understanding the scope of the reductions. Reports also indicate layoffs in Canada.

Over 150 jobs have been cut in the Seattle area, a region previously considered a hub for Oracle Cloud Infrastructure (OCI). The company’s headquarters relocation to Nashville has led to more job openings in Tennessee.

The total number of job cuts is uncertain, affecting various OCI teams such as Enterprise Engineering, Fusion ERP, data centre operations, technical project managers in AI/ML, and OCI AI team members.

While the current focus is on the US and India, employees in other regions are anticipating meetings with managers, raising concerns about additional layoffs.

Oracle has previously conducted layoffs in OCI, with hundreds of workers affected in November. The company also implemented broader cuts in March impacting thousands of employees.

Despite the layoffs, Oracle is actively hiring to support the expansion of its AI data centres, crucial for projects like OpenAI’s Stargate. The company has secured substantial contracts with OpenAI, TikTok, and Temu.

Oracle’s stock has surged 52% this year, driven by its cloud business. The company recently signed a significant deal with OpenAI for data centre power. However, meeting the demand for AI services requires substantial investment.

Several tech giants, including Microsoft, Amazon, and Meta, have also made cuts while investing in AI infrastructure.

Oracle stated in a filing that workforce changes are necessary due to strategic shifts, reorganisations, or performance issues, which may result in increased restructuring costs.

The mix of layoffs and hiring reflects the challenge tech companies face in scaling AI infrastructure rapidly while managing costs.

Cloud jobs cut as AI bites

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