'Today is your last day': Oracle begins mass layoffs in India amid AI push, product engineering team most affected
PTC News Desk: Oracle has started another round of layoffs in India, with employees from several teams receiving termination notices, sources said. The latest job cuts began in the US on September 14 and have now extended to India, with product engineering teams appearing to be the most affected.
Support and consulting teams have seen fewer layoffs, while some senior employees of Oracle Financial Services Software (OFSS) have also been affected globally. Oracle has not revealed the exact number of employees impacted by the latest cuts.
The termination email sent to employees said their positions were being eliminated as part of a “broader organisational change”. It did not give individual reasons for the layoffs.
Employees were also informed that their access to Oracle’s computers, email, voicemail and files would soon be disabled. They were asked to provide a personal email address to receive details about severance pay and other documents related to their exit.
Oracle spending billions on AI
Oracle is investing heavily in data centres and computing infrastructure to meet the growing demand for AI services. The company spent $28.5 billion on capital expenditure in the first quarter of fiscal 2027, more than three times the $8.5 billion it spent during the same period last year.
Oracle has maintained its full-year capital expenditure forecast of $90 billion to $95 billion. At the same time, demand for its AI cloud services remains strong. The company said it signed more than $30 billion in additional AI cloud contracts during the quarter.
However, building this infrastructure is expensive. Oracle reported negative free cash flow of $5.4 billion during the quarter. The company is therefore trying to balance heavy spending on AI with efforts to control costs.
Already cut 21,000 Jobs
Oracle’s workforce declined by around 21,000 employees, or 13 per cent, during fiscal 2026. The company had around 1,41,000 employees globally at the end of May, compared with approximately 1,62,000 a year earlier.
Oracle also spent about $1.84 billion on severance payments and other restructuring-related costs during the year. The company has said that the adoption and deployment of AI were among the factors behind the workforce reduction.
- PTC NEWS
