Tech giant Oracle lays off cloud-related positions, disproportionately impacting Seattle, amidst a surge in artificial intelligence investments
Oracle, the tech giant based in California, has announced a significant round of layoffs affecting more than 300 employees in Washington State and California. The layoffs, effective October 13, 2025, are part of a broader strategic realignment towards AI and cloud infrastructure projects.
In California, 143 employees at the Redwood City office, 101 at Santa Clara and Pleasanton, and 161 employees in Seattle, Washington, have received layoff notices. The affected roles include software engineers, cloud support engineers, and program managers.
The financial context shows Oracle investing heavily in AI and cloud expansions, leading to periods of financial strain despite strong cloud momentum. This has driven cost control measures, including layoffs. The company has cited workforce reshaping due to strategy changes and reorganizations as a typical factor in such cuts.
The layoffs in India are also part of a broader trend in the tech industry. Reports suggest that Oracle has let go about 10 percent of its Indian staff, with Tata Consultancy Services laying off over 10,000 employees due to "macro uncertainties and AI disruptions." The exact scale of Oracle's layoffs in India is estimated to be in the low thousands worldwide, with some offices potentially closing.
However, the layoffs are not attributed to AI taking people's jobs in the traditional sense. Instead, they are linked to the lack of success of Oracle Cloud Infrastructure (OCI). According to sources, many OCI services have few or no customers. The company is reportedly winding down its presence in Seattle and closing offices due to a lack of demand for OCI services.
Despite these challenges, Oracle Chairman and CTO Larry Ellison stated that Oracle Cloud Infrastructure consumption revenue grew 62% in Q4 and expects it to grow even faster in FY26. Ellison also highlighted Oracle's $500 billion joint venture with OpenAI and SoftBank focused on massive US data center expansions and cloud services deals with companies like TikTok and Temu.
The source's claim is that Oracle's only 'in' on AI is spending all the money it can on AI infrastructure to sell to companies like TikTok. However, the company's success is primarily due to the rise of AI, according to the source.
In summary, the layoffs in Washington State and California are linked to strategic shifts and cost control amid massive AI and cloud investments, while the large cuts in India relate to similar macroeconomic and AI-driven pressures affecting the global tech workforce.
- Oracle's strategic realignment towards AI and cloud infrastructure projects may have influenced the decision to invest heavily in AI infrastructure, leading to a potential surge in spending and, consequently, periods of financial strain.
- Despite the layoffs in various regions, including Washington State and California, Oracle remains optimistic about its AI and cloud ventures, with the consumption revenue for Oracle Cloud Infrastructure growing by 62% in Q4 and expected to increase further in FY26.
- In the midst of debates about AI taking jobs, the layoffs at Oracle are not primarily attributed to AI but rather to the lack of success of Oracle Cloud Infrastructure (OCI), indicating potential challenges in transitioning to cloud technology and AI-based services.
