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Oracle Cuts Jobs in US and India to Fuel $500 Billion AI Expansion

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August 14, 2025 – Global technology major Oracle has initiated significant layoffs across its US and India operations as part of a strategic restructuring to accelerate its investment in artificial intelligence (AI) infrastructure.

Major Job Cuts in India and the US

Sources indicate that around 10% of Oracle’s Indian workforce—dozens of skilled engineers and support staff—have been let go. The move has impacted Oracle Cloud Infrastructure (OCI) teams in the US as well, with more than 150 positions reportedly cut in the Seattle area alone.

While “restructuring” has been cited as the official reason, industry analysts believe the decision aligns with changing US policies under President Donald Trump, particularly his push to reduce offshore operations and curb dependence on H-1B visas. Employees in Canada, Mexico, and other regions have also been informed of upcoming undisclosed “manager meetings,” sparking speculation about further global job reductions.

India’s Strategic Role and the Impact

As of 2024, Oracle India employed roughly 28,824 people—forming a crucial part of the company’s global headcount of 162,000. The country serves as a major hub for software development, cloud services, and technical support. The layoffs are expected to significantly affect India’s technology talent pool, particularly in Bengaluru, Hyderabad, Chennai, Mumbai, Pune, Noida, Kolkata, and other key locations.

Oracle has also been expanding into Tier-II and Tier-III cities, including Chandigarh, Lucknow, Jaipur, Bhopal, and Thiruvananthapuram. However, the latest job cuts could slow down these regional growth plans.

Trump Meeting and OpenAI Deal

On August 7, Oracle CEO Larry Wilson met President Trump at the Oval Office to discuss domestic hiring, technology partnerships, and national data security priorities. Shortly after, Oracle announced a landmark deal with OpenAI, under which vast volumes of OpenAI data will be processed on Oracle’s systems.

This agreement positions Oracle as a critical player in the AI race, especially through the “Stargate” project—a joint initiative with OpenAI and SoftBank Group aiming to invest $500 billion in AI infrastructure, including 4.5 gigawatts of US data centre capacity.

AI Growth Driving Cost-Cutting Measures

Oracle’s move follows a broader trend among major technology companies. Microsoft, Amazon, and Meta have all announced job cuts this year to reallocate resources towards AI development. The enormous costs of building and operating AI-capable data centres are prompting even the largest firms to trim headcount in other divisions.

While Oracle’s cloud division is performing strongly and the company’s stock remains near record highs, Bloomberg reports that Oracle spent more than it earned in the fiscal year ending May—highlighting the financial strain of its aggressive AI push.

Targeted Restructuring

Despite the cuts, Oracle continues to hire selectively for high-priority roles, suggesting this is a targeted restructuring rather than a blanket downsizing. A June regulatory filing had already hinted at potential reshaping of the workforce due to strategic and performance-related adjustments.