American technology giant Oracle has laid off around 10% of its Indian workforce, leaving dozens of skilled professionals without jobs overnight. The company has cited “restructuring” as the official reason for the cuts, but industry watchers are linking the move to shifting US policy under Donald Trump’s renewed push to curb offshoring and reduce dependence on H-1B visas. As a result, several Indians are on the verge of losing jobs overnight.
According to Data Centre Dynamics, Oracle’s Indian operations are among the hardest hit, while US-based Oracle Cloud Infrastructure (OCI) teams are still being informed of layoffs. Reports indicate cuts in Canada as well. Although the US and India have been the first to face job losses, employees in other regions have reported being scheduled for undisclosed manager meetings later this week, fuelling speculation that further workforce reductions could be imminent across Oracle’s global operations.
According to people familiar with the matter, Oracle’s chief executive, Larry Wilson, met US President Donald Trump at the Oval Office on August 7. The discussion reportedly touched on domestic hiring, technology partnerships, and national data security priorities. Shortly afterwards, Oracle announced a landmark deal with OpenAI, under which a massive volume of OpenAI’s data will now be processed on Oracle’s systems.
The timing has raised eyebrows in the tech community, particularly as Oracle has simultaneously begun a large hiring drive at its Virginia office while trimming headcount overseas. In Mexico, Oracle staff have also reportedly been given notice, with insiders saying the region may face cuts similar to those in India.
Impact on Indians
The layoffs are expected to have a notable effect in India, which hosts a significant portion of Oracle’s global workforce. As of 2024, Oracle India employed roughly 28,824 people, contributing to the company’s worldwide headcount of about 162,000 in 2025. India has been a critical hub for Oracle’s software development, cloud services, and technical support functions, making the cuts particularly impactful on the local talent pool.
What do we know about layoffs?
According to the report, the company is cutting more than 150 roles in the Seattle area, the unit’s longtime hub. Affected employees were informed this week that their positions had been eliminated. The full extent of the job reductions is not yet clear, though people familiar with the matter said the decisions were tied to performance-related issues. Despite the cuts, the division is still hiring for select roles, suggesting a targeted rather than wholesale restructuring.
In a June regulatory filing, Oracle had noted that it periodically reshapes its workforce due to strategy changes, reorganisations, or performance considerations. “These types of restructurings have resulted, and may in the future result, in increased restructuring costs and temporarily reduced productivity while employees adjust to the restructuring,” the company stated at the time.
Tech layoffs this year
Oracle’s move follows a broader trend among major technology companies, which are offsetting the rapidly rising costs of AI infrastructure by trimming headcount elsewhere. Microsoft has cut around 15,000 jobs this year, while Amazon and Meta Platforms have also scaled back staffing as they redirect resources towards AI initiatives.
The escalating financial demands of AI development, driven by the need for vast data centre capacity and computing power, are forcing even the largest firms to rebalance their spending priorities.
Cloud growth and the OpenAI deal
Oracle’s stock remains near record highs, fuelled by strong momentum in its cloud unit. This comes after the company secured an unprecedented agreement with OpenAI last month for roughly 4.5 gigawatts of US data centre power. Under the deal, OpenAI will rent significant computing capacity from Oracle’s facilities as part of its “Stargate” project, an ambitious collaboration with Oracle and SoftBank Group aiming to invest $500 billion in AI infrastructure.
While the deal positions Oracle as a key player in the AI race, it also brings steep financial demands. The company still faces tens of billions of dollars in costs to expand its data centre network to meet rising demand. Bloomberg noted that Oracle spent more than it earned in the fiscal year ending May, underscoring the financial strain of its aggressive expansion.
Oracle, which has been in India for the past 20 years, has multiple offices across India in major cities such as Bengaluru, Hyderabad, Chennai, Mumbai, Pune, Noida, Kolkata, and others. It also has a geo-expansion program targeting Tier-II and Tier-III cities in places like Chandigarh, Lucknow, Jaipur, Bhopal, and Thiruvananthapuram.
