Oracle has made significant job cuts across markets, with global layoffs expected to touch 30,000 employees. In India alone, around 12,000 employees are believed to have been laid off, marking a nearly 50 percent reduction in the company’s workforce in the region.

The layoffs span a wide range of roles, including engineers, architects, program managers, and operations leaders. According to senior manager Michael Shepherd, “The layoffs were not performance based,” indicating that the cuts are part of a broader restructuring strategy.

Oracle’s job cuts reflect a wider pattern across the technology sector amid rising AI adoption. Mike Sicilia, a senior executive, noted that “AI tools are enabling smaller teams to deliver more output, reducing the need for large engineering groups.” This shift is influencing workforce requirements across the industry.

The severance package for affected employees in India includes 15 days’ salary for each year of service, notice pay, leave encashment, gratuity where applicable, and an additional two-month salary top-up. This package aims to provide some financial support to those impacted by the layoffs.

Despite the job cuts, Oracle is planning to invest at least $50 billion in infrastructure this year and has raised an additional $50 billion in debt to meet growing demand. The company’s total debt has now crossed $100 billion, following $58 billion in new issuances tied to data center investments.

Oracle is also part of the $500 billion Stargate initiative, aimed at building data center capacity to support future AI workloads. Additionally, the company has committed $2 billion in Germany and $8 billion in Japan toward AI and cloud expansion, indicating a continued focus on growth despite the layoffs.

Details remain unconfirmed regarding further layoffs in India, which are expected within weeks. The exact impact on Indian workers in overseas roles is also unclear, leaving many employees anxious about their job security.

As Oracle navigates this challenging landscape, observers will be watching closely to see how these changes affect the company’s operations and its workforce in the coming months.

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Meta is preparing for its largest-ever round of layoffs, which could affect approximately 20% of its nearly 79,000 employees, translating to around 15,800 jobs. This decision comes as the company commits $600 billion to bolster its AI infrastructure, necessitating a reduction in headcount to finance these initiatives.

Employees in the wearables and ads divisions have been directed to work remotely as layoffs are anticipated soon. This move follows previous rounds of layoffs, where Meta cut 11,000 jobs in November 2022 and another 10,000 in the spring of 2023. Additionally, the Reality Labs division has already seen cuts impacting more than 1,000 roles earlier this year.

Meta’s senior leadership has reportedly asked managers to plan for cuts of 20% or more, although no specific date or final headcount has been established. Analysts suggest that the cuts could extend beyond 20% if AI tools prove as productive as the company anticipates. Barton Crockett, an analyst at Rosenblatt Securities, noted, “The cuts need not stop at 20% if AI tools prove as productive as the company anticipates.”

As part of its restructuring efforts, Meta is introducing a new stock option incentive program for top executives, indicating a shift in focus towards long-term success in the AI sector. The rationale behind these layoffs is tied to Meta’s strategy of converting labor costs into compute capacity, allowing the company to operate effectively with a smaller team.

Following the announcement of the layoffs, Meta’s shares rose nearly 3%, suggesting that investors are focused on margin improvement and the company’s commitment to AI. A spokesperson remarked, “This is a big bet. These pay packages will not be realized unless Meta achieves massive future success, benefiting all of our shareholders.”

What observers say

Meta has committed to AI infrastructure at a scale that requires offsetting capital somewhere. Details remain unconfirmed regarding the specific timeline for the layoffs and which business units will be affected. The final scope of the layoffs remains unresolved, leaving many employees uncertain about their future within the company.

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