Oracle layoffs: 30,000 job cuts likely by June 15 despite booming cloud, AI growth and strong earnings
Oracle layoffs: Executives have indicated that the layoffs are part of an effort to redirect resources toward high-growth AI businesses as demand for computing capacity surges, a report said.
Oracle Corp has moved into the final phase of what is expected to be its largest workforce reduction, with thousands of employees reaching official separation dates between June 1 and June 15. The company is expected to complete the departure of nearly 30,000 employees, or about 18% of its global workforce.
Oracle layoffs come despite the software giant posting robust earnings and accelerating growth in cloud and artificial intelligence (AI).
During the third-quarter fiscal 2026, Oracle reported stronger-than-expected earnings, driven by surging demand for cloud infrastructure and AI-related services.
The company’s revenue rose 22% year-on-year (YoY) to $17.2 billion, while cloud revenue jumped 44% to $8.9 billion, as per a Tech Times report.
The company’s AI business expanded even faster, with Oracle Cloud Infrastructure’s AI segment reporting 243% growth and multicloud database revenue soaring 531%. GAAP net income stood at $3.7 billion for the quarter.
The contrast between strong financial performance and deep workforce cuts highlights a broader shift underway at Oracle, where management is prioritising AI infrastructure investments over labour-intensive operations.
Reason behind Oracle Layoffs
Oracle has committed nearly $50 billion in capital expenditure for fiscal 2026, largely directed toward expanding AI data centres and cloud infrastructure. The company is also a key participant in Stargate, the large-scale AI infrastructure venture backed by OpenAI and SoftBank.
Executives have indicated that the layoffs are part of an effort to redirect resources toward high-growth AI businesses as demand for computing capacity surges, Tech Times reported.
Oracle’s remaining performance obligations — a measure of contracted future revenue — climbed 325% year-on-year to $553 billion, reflecting strong long-term demand for AI infrastructure.
For affected workers, however, the transition has been difficult. Oracle’s severance package, which includes tenure-based payouts capped at 26 weeks, has drawn criticism from some employees, particularly over the forfeiture of unvested stock awards. A group of laid-off workers reportedly petitioned for improved compensation terms, but the company declined to revise the package.
About the Author
Ankit Gohel is the Deputy Chief Content Producer at Livemint, specialising in financial markets, macroeconomics, and regulatory developments. With a strong focus on equity markets, primary issuances, and policy-driven market movements, he brings clarity to complex financial developments for investors and market participants. <br><br> With nine years of experience in business and financial journalism, Ankit’s approach is rooted in the belief that market reporting should go beyond headlines — connecting data, policy, and ground realities to deliver actionable insights. His work consistently bridges the gap between institutional analysis and investor understanding. <br><br> Ankit has spent three years at Livemint, where he currently helps drive market coverage, editorial strategy, and high-impact financial stories. Prior to this, he worked with leading business news networks such as CNBC-TV18, ET Now, TickerPlant News Service where he built deep expertise in stock market analysis, macroeconomic trends, primary markets, and coverage of key regulators including the RBI and SEBI. <br><br> Over the years, he has covered market cycles across bull and bear phases, IPO booms, liquidity shocks, and major policy shifts that reshaped investor sentiment. He has interviewed fund managers, corporate leaders, and policymakers, translating their perspectives into sharp, data-backed narratives. Ankit combines speed with accuracy — ensuring timely, credible, and insight-driven financial journalism that empowers both retail and institutional audiences.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.