Oracle has reportedly cut jobs in its cloud infrastructure division as part of a restructuring aimed at boosting investment in artificial intelligence (AI). Employees in the Oracle Cloud Infrastructure (OCI) unit were told this week that their positions had been eliminated, reports Data Center Dynamics. The company has not confirmed the exact number (and even not yet issued an official statement regarding the layoffs), but the report suggests that several hundred roles could be affected, primarily in India and also in the United States.
As per the report, the layoffs are affecting a range of groups within Oracle’s cloud business, including the Enterprise Engineering division of OCI, the Fusion ERP software team, staff who maintain and run data centers, project managers overseeing AI and machine learning work, and other employees working directly on OCI’s artificial intelligence projects.
Meanwhile, apart from the US and India, employees in other countries are scheduled for unspecified meetings with their managers later this week, prompting speculation that further job cuts may soon take place in those regions.
Although these layoffs cut certain positions, the company is not pulling back from the cloud market. According to the report, the changes are part of a targeted restructuring, aimed at replacing some roles with new hires whose skills better match Oracle’s growing focus on AI infrastructure. Some of the job cuts were related to performance concerns, but the main reason is to shift resources toward areas that can support the growing demand for AI-powered services.
The job cuts come as Oracle works to strengthen its position against major cloud rivals like Amazon Web Services, Microsoft Azure, and Google Cloud. With AI technology spreading quickly around the world, cloud companies are competing to build powerful computing systems that can handle the training and deployment of large machine learning models. To keep up, Oracle has been investing heavily in expanding its data centers to make them ready for AI workloads and forming partnerships with well-known AI firms. For example, earlier this year, OpenAI and Oracle entered into a $30 billion-a-year agreement to supply the infrastructure.
Even in its Q4 FY25 financial results, the company showed strong performance, with total revenue reaching $15.9 billion (representing an 11% increase compared with the same period last year). Cloud revenue (containing both IaaS and SaaS) increased 27% to $6.7 billion, while Oracle’s Cloud Infrastructure (OCI) revenue surged 52% to $3 billion (emerging as a major source of growth).
However, despite such performance, this is not the first time Oracle’s Cloud Infrastructure division has faced significant job cuts. In November 2024, the company reportedly laid off several hundred employees within OCI. At that time, several reports revealed that many of the affected roles belonged to senior staff whose positions were replaced by junior hires at lower cost. The impact of that round was concentrated mainly in US operations.
