Oracle Layoffs: In another setback for tech employees, Oracle has become the latest company to reduce headcount in its high-profile cloud division, Bloomberg reported. The move is aimed at curbing costs
amid soaring investments in artificial intelligence (AI) infrastructure, with some job cuts also linked to performance issues.
Oracle’s stock is trading near an all-time high, fuelled by strong momentum in its cloud business. Just last month, the company signed an unprecedented agreement with OpenAI to supply roughly 4.5 gigawatts of US data centre power. However, this expansion comes with tens of billions of dollars in commitments to build massive server farms to meet demand. In the fiscal year ending May, Oracle’s free cash flow turned negative.
In a June filing, the company said it periodically adjusts its workforce for strategic changes, reorganisations, or performance reasons. “These types of restructurings have resulted, and may in the future result, in increased restructuring costs and temporarily reduced productivity while employees adjust,” the filing noted.
The cuts reflect a broader trend in the tech sector, where giants are tightening expenses to offset AI-related spending. Microsoft, Amazon, and Meta have all announced layoffs this year.
Microsoft Layoffs
Microsoft has eliminated about 15,000 jobs in 2025, with 9,000 more to go—less than 4% of its global workforce. The reductions aim to streamline operations, reduce layers of middle management, and sharpen focus on AI. The cuts will span teams, geographies, and experience levels, a spokesperson said.
CEO Satya Nadella admitted the decision “weighs heavily” but called it “the enigma of success,” stressing that the tech industry evolves in ways that are not always logical. He reiterated AI’s central role in Microsoft’s mission, with plans to launch new AI products and empower users to build their own AI solutions.
TCS Layoffs
Tata Consultancy Services (TCS) is planning its largest-ever workforce reduction—about 12,000 jobs—mainly in mid- and senior-level roles. The move, part of its “Future-Ready” strategy, represents a 2% reduction and is officially attributed to skill mismatches rather than AI-driven productivity gains. However, experts view it as the beginning of a wider AI-triggered shift that could eliminate 400,000–500,000 jobs in India’s $283 billion IT sector over the next two to three years, Reuters reported.
AI adoption is accelerating automation in areas like basic coding, manual testing, and customer support—demanding skills many current employees lack, according to industry veterans and staffing firms.
Gaurav Vasu, founder of UnearthInsight, warned that 70% of those potentially affected—roughly 400,000 to 500,000 professionals—have between 4 and 12 years of experience. Vulnerable roles include people managers with limited technical expertise, software testers, and basic infrastructure support staff.
Vasu cautioned that the fear from such layoffs, particularly TCS’s, could dampen consumer demand for tourism, luxury goods, and even delay big-ticket investments like real estate.