Oracle (ORCL) is implementing strategic layoffs within its Oracle Cloud Infrastructure (OCI) division as the company reallocates resources to capitalize on the artificial intelligence (AI) boom, joining its fellow tech giants grappling with AI’s escalating costs.
The job cuts, affecting hundreds of positions primarily in India and the United States, target the Enterprise Engineering division, Fusion ERP teams, and data center operations staff. However, this isn’t a retreat from cloud computing as Oracle is simultaneously hiring new talent with AI-specific skills to support its growing focus on machine learning infrastructure.
The restructuring reflects Oracle’s aggressive pursuit of AI market share against Amazon Web Services (AMZN), Microsoft Azure (MSFT), and Google Cloud (GOOGL). Its $30 billion annual agreement with OpenAI demonstrates a commitment to AI infrastructure, requiring massive capital reallocation to build specialized data centers and computing systems.
Oracle delivered exceptional fiscal fourth-quarter results that showcased the company’s transformation into an AI-powered cloud infrastructure powerhouse, with management providing aggressive growth guidance that defied industry trends.
Cloud infrastructure revenue surged 52% to $3 billion, while total cloud revenue jumped 27% to $6.7 billion. More impressively, CEO Safra Catz guided for over 70% cloud infrastructure growth in fiscal 2026, up from 51% in fiscal 2025. Oracle’s remaining performance obligations (RPO) now stand at $138 billion, up 41% year-over-year, with over 100% RPO growth expected next year.
Oracle’s unique position stems from its AI-centric database technology, Oracle 23 AI, which enables enterprises to use AI models on their proprietary data while maintaining security. “We have most of the world’s valuable data,” declared Chairman Larry Ellison, emphasizing that Oracle is “the key enabler for enterprises to use their own data and AI models.”
Oracle faces unprecedented demand that “dramatically outstrips supply,” forcing it to schedule customers into future delivery slots. Recent contracts include deals where customers requested “all the capacity you have wherever it is,” highlighting the astronomical demand environment.
