Oracle lays off 10% of India staff in cloud and AI restructuring

Oracle has cut around 10% of its workforce in India, with the majority of roles eliminated in its Oracle Cloud Infrastructure (OCI) division, as the US-based technology giant reshapes operations to channel resources into artificial intelligence and data centre expansion.

The cuts, first reported by Reuters on 16 August 2025, form part of a broader global restructuring that has also impacted employees in the United States, Israel, and Canada. Teams spanning enterprise engineering, Fusion ERP, AI/ML, and other core cloud functions are understood to have been affected.

While Oracle has continued to benefit from rising global demand for cloud services, the company has embarked on a strategy to reallocate spending towards capital-heavy infrastructure to support generative AI. Executives have repeatedly stressed that scaling data centres and cloud capacity will be critical to sustaining future revenue growth.

The restructuring reflects a broader trend among large technology firms. Amazon, Microsoft and Google have all carried out rounds of layoffs in their cloud and AI divisions this year, even as revenues continue to rise, in an effort to balance expansion with structural efficiency.

India’s role in Oracle’s cloud operations

India has been central to Oracle’s global delivery network, with engineering hubs in Bengaluru, Hyderabad and Mumbai playing a pivotal role in software development, enterprise applications and cloud operations. Industry trackers estimate that Oracle employs more than 40,000 people in India, making it one of the company’s largest talent bases outside the US.

By trimming approximately 10% of its headcount, Oracle joins other multinational technology firms that have carried out job cuts in India this year amid AI-driven restructuring. Microsoft announced in July that it was consolidating some India-based AI research teams, while Google scaled back certain engineering roles in Bengaluru earlier in 2025.

Globally, Oracle has confirmed a series of cost adjustments as part of its effort to deliver sustainable growth. The company has not disclosed the precise number of employees affected worldwide, but Reuters reported that the cuts are concentrated in cloud-related functions across multiple geographies.

The layoffs come despite Oracle posting strong quarterly earnings from its cloud adoption business earlier this year. In June, Oracle reported a 20% year-on-year increase in cloud revenue, driven by demand for its infrastructure-as-a-service (IaaS) and software-as-a-service (SaaS) offerings.