Oracle cuts thousands of jobs as it shifts focus to artificial intelligence

 Oracle cuts thousands of jobs as it shifts focus to artificial intelligence

New York: Oracle has continued a major round of global job cuts as the technology company reshapes its business around artificial intelligence and cloud computing. The latest wave of layoffs has affected more than 500 employees in Romania, with many workers reportedly receiving an early morning email informing them that they had been selected for dismissal.

According to reports, employees received an email around 6 a.m. with the subject line stating that they were proposed impacted employees under a collective dismissal process. Several workers said the announcement came without prior notice and that many managers were also unaware of the decision before the emails were sent. The manner in which the layoffs were communicated has drawn criticism from employees who described the process as sudden and impersonal.

The latest cuts are part of a much broader restructuring effort that Oracle has been carrying out across several countries this year. The company has already reduced its workforce in the United States, India, Canada and other international locations as it reorganises its operations to support its expanding artificial intelligence business.

Oracle's latest annual report shows that its global workforce declined from about 162,000 employees to around 141,000 during the financial year ending in May 2026. This means the company reduced its staff by roughly 21,000 employees, representing a decrease of about 13 percent. The report also revealed that Oracle spent nearly 1.84 billion dollars on restructuring and severance costs during the year, a sharp increase from 374 million dollars in the previous financial year.

Despite the scale of the layoffs, Oracle is not facing financial difficulties. Instead, the company is investing heavily in expanding its cloud infrastructure and artificial intelligence capabilities. The technology giant has announced plans to spend around 70 billion dollars on capital investments this year to build new data centres and strengthen its Oracle Cloud Infrastructure platform.

The company believes demand for artificial intelligence services will continue to grow rapidly as businesses increasingly adopt AI technologies. Oracle has been securing major cloud computing agreements with leading artificial intelligence companies and expects those partnerships to drive future growth.

Industry analysts say Oracle's restructuring reflects a wider trend across the technology sector. Many major technology companies are reducing staff in traditional business units while increasing investments in artificial intelligence, automation and cloud services. As businesses redirect resources toward these fast growing areas, some departments have experienced significant job reductions even as companies continue to report healthy revenues.

Oracle has said that the workforce changes are linked to organisational restructuring, changing business priorities, acquisitions and performance related decisions. The company has also acknowledged that artificial intelligence is changing the skills required across different parts of its business, leading to shifts in hiring and staffing needs.

The latest layoffs in Romania highlight the growing impact of these changes on Oracle's international workforce. Romania has long served as one of the company's largest engineering and technology centres in Eastern Europe, making the latest job cuts particularly significant for the region.

Reports indicate that many affected employees lost access to company systems shortly after receiving the notification emails, following a pattern seen during earlier rounds of layoffs this year. Employees have expressed concern over the lack of direct communication and the uncertainty surrounding future staffing decisions.

Even as it reduces its workforce, Oracle continues to report strong demand for its cloud services. The company's cloud business has become one of its fastest growing divisions, driven largely by increased customer demand for artificial intelligence computing power and cloud infrastructure.

Market analysts believe Oracle's strategy is aimed at strengthening its position against larger cloud competitors by focusing its investments on high growth technologies. While the restructuring has resulted in thousands of job losses worldwide, the company is betting that expanding its artificial intelligence and cloud operations will support long term growth and help secure a stronger position in the rapidly evolving technology industry.


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