American tech giant Oracle has announced layoffs impacting around 10% of its Indian employees, leaving dozens of skilled professionals jobless overnight. The company has officially cited “restructuring” as the reason, but industry observers link the move to shifting US policies under Donald Trump’s renewed push to curb offshoring and reduce reliance on H-1B visas.
According to Data Centre Dynamics, Oracle’s Indian operations are among the worst affected, with similar cuts reported in Canada and other regions. Employees in multiple countries have been summoned to undisclosed manager meetings this week, sparking speculation that more global layoffs are imminent.
The timing of these cuts has raised eyebrows, especially as Oracle CEO Larry Wilson met with US President Donald Trump at the White House on August 7 to discuss domestic hiring, technology partnerships, and national data security. Shortly afterward, Oracle signed a landmark deal with OpenAI, agreeing to process massive volumes of AI data through its systems.
Impact on Indian Operations
India is home to a significant chunk of Oracle’s global workforce — approximately 28,824 employees as of 2024 — spread across major cities like Bengaluru, Hyderabad, Chennai, Mumbai, Pune, Noida, and Kolkata, along with expansion plans in Tier-II and Tier-III cities. The layoffs will particularly impact the local talent pool, as India plays a crucial role in Oracle’s software development, cloud services, and technical support.
Reports also indicate that Oracle has cut over 150 roles in its Seattle hub, with performance-based criteria influencing the decision. While some positions are being eliminated, the company continues to hire selectively, suggesting a targeted restructuring rather than an across-the-board downsizing.
Part of a Bigger Tech Layoff Trend
Oracle’s move follows a wider trend among big tech companies, many of which are cutting jobs to offset AI infrastructure costs. In 2025, Microsoft has already laid off around 15,000 workers, while Amazon and Meta have also reduced headcount to redirect resources toward AI innovation.
The escalating costs of AI development, including massive data centre investments, are forcing tech giants to rebalance budgets. Bloomberg reports that Oracle spent more than it earned in the fiscal year ending May, largely due to its aggressive expansion in cloud capacity.
The OpenAI Collaboration
Oracle’s stock remains near record highs thanks to strong growth in its cloud business. Last month, the company struck an unprecedented deal with OpenAI for 4.5 gigawatts of US data centre power under the ambitious “Stargate” AI infrastructure project, in collaboration with SoftBank Group. The project aims to invest $500 billion in AI infrastructure.
While the partnership cements Oracle’s position in the AI race, the financial burden of expanding global data centres could mean more restructuring decisions ahead.