Oracle’s layoffs mirror a wider pattern across the global technology sector. Wikimedia CommonsThe recent layoffs at Oracle Corporation have brought into sharp focus a broader shift underway in the global technology industry: the pivot towards artificial intelligence infrastructure. The US-based enterprise software giant has cut roughly 11,000-12,000 jobs in India — almost half of its workforce in the country — as part of a larger global restructuring exercise, even as it pours billions of dollars into AI and cloud computing investments.Oracle’s layoffs mirror a wider pattern across the global technology sector, where companies are trimming traditional roles while investing heavily in artificial intelligence. Industry estimates suggest tens of thousands of jobs have been cut across tech companies this year as firms reorganise around AI-driven growth.For India, which hosts large technology development centres for global companies, such restructuring exercises can have an outsized impact. While the country remains a key engineering and services hub, the shift towards automation and AI infrastructure is beginning to reshape hiring patterns in the technology industry.The layoffs highlight the tension between the massive capital requirements of AI development and the human workforce that previously powered the software industry, a transition that is increasingly defining the next phase of the global tech sector.What happenedThe layoffs in India form part of a worldwide workforce reduction that could affect up to 30,000 employees across markets. The job cuts are significant because Oracle’s India workforce is estimated at around 30,000 employees, meaning the retrenchment could impact a substantial portion of its local staff.Employees are understood to have received termination emails informing them that their roles had been eliminated as part of organisational restructuring, with some accounts indicating that notifications were sent with little prior warning. Severance packages are understood to include salary payouts tied to years of service, notice pay and other statutory benefits.Also Read | Why the Indian IT sector must course-correct amidst ‘SaaSpocalypse’ fearsWhile Oracle has not publicly disclosed the exact number of layoffs, the scale of the exercise suggests one of the largest workforce reductions in the company’s history. Another round of job cuts may also be on the cards in the coming weeks, it is understood.Story continues below this adMichael Shepherd, a senior manager at the company who was not affected by the job cuts, wrote on LinkedIn on Tuesday, saying that “Oracle conducted a significant reduction in force,” impacting “senior engineers, architects, operations leaders, program managers, and technical specialists”.Why Oracle is cutting jobsThe layoffs come as Oracle restructures its business to support large-scale investments in artificial intelligence and cloud infrastructure. Analysts say the company is reallocating resources from traditional enterprise software and internal operations towards building AI-ready data centres and expanding its cloud services.Oracle has been rapidly scaling its cloud infrastructure to compete with industry leaders such as Amazon and Alphabet. These investments include building new data centres and expanding computing capacity needed to train and run large AI models.One of the most significant initiatives tied to this push is the “Stargate” AI infrastructure project, a massive effort aimed at developing next-generation data centre capacity for AI workloads. The project is expected to involve investments running into hundreds of billions of dollars over several years.Story continues below this adThe company has also integrated generative AI capabilities into several of its enterprise products and cloud offerings in recent months as it attempts to reposition itself as a key infrastructure provider for the AI economy.Soumyarendra Barik is a Special Correspondent with The Indian Express, specializing in the complex and evolving intersection of technology, policy, and society. With over five years of newsroom experience, he is a key voice in documenting how digital transformations impact the daily lives of Indian citizens. Expertise & Focus Areas Barik’s reporting delves into the regulatory and human aspects of the tech world. His core areas of focus include: The Gig Economy: He extensively covers the rights and working conditions of gig workers in India. Tech Policy & Regulation: Analysis of policy interventions that impact Big Tech companies and the broader digital ecosystem. Digital Rights: Reporting on data privacy, internet freedom, and India's prevalent digital divide. Authoritativeness & On-Ground Reporting: Barik is known for his immersive and data-driven approach to journalism. A notable example of his commitment to authentic storytelling involves him tailing a food delivery worker for over 12 hours. This investigative piece quantified the meager earnings and physical toll involved in the profession, providing a verified, ground-level perspective often missing in tech reporting. Personal Interests Outside of the newsroom, Soumyarendra is a self-confessed nerd about horology (watches), follows Formula 1 racing closely, and is an avid football fan. Find all stories by Soumyarendra Barik here. ... Read More © The Indian Express Pvt LtdTags:Express Explained