Oracle's cloud division hit hard by layoffs, hundreds of jobs at risk

Oracle Corporation has reportedly launched a substantial round of layoffs within its Oracle Cloud Infrastructure (OCI) division, with Channel Futures noting that “several hundred” jobs have been affected, largely across its cloud-focused operations. 

The layoffs, which were revealed over the weekend, have fuelled widespread speculation and commentary across professional networking sites like TheLayoff.com and Blind, with posts indicating that both entry-level and senior positions have been impacted.

According to Channel Futures, the OCI division appears to be at the centre of Oracle's latest workforce reductions. Posts on TheLayoff.com from Friday, November 1, suggest that at least 15 employees were terminated, including some high performers. 

One anonymous commenter estimated that these cuts could represent around 0.1% of OCI's total workforce, which is believed to number approximately 15,000. Some employees reportedly "disappeared from Slack within 2-3 hours," indicating a sudden layoff process with no immediate opportunities for redeployment within the company.

Insights shared on Blind further reveal the scale and nature of these layoffs. Here, a commenter speculated that several hundred OCI positions might have been affected, with layoffs targeting employees ranging from recent college graduates to senior directors. 

Additionally, one user speculated that Oracle was focusing on cutting high-cost roles to make way for lower-cost replacements, with comparisons drawn to restructuring strategies used by other tech giants.

While Oracle has not yet confirmed the layoffs or disclosed the precise number of impacted employees, reports suggest that the layoffs have primarily affected U.S.-based employees, though some international roles may also be involved. This follows Oracle’s previous job cuts announced a month ago, which affected employees in the U.S., Southern Europe, and the EMEA region.

Observers in the online discussions have raised concerns that Oracle, like several other major tech companies, may be pivoting towards hiring in lower-cost regions. There is some speculation that this move could help reduce costs by replacing positions previously held by international employees on U.S. sponsorship with roles based in regions like India, where operational expenses may be lower.

This round of cuts also arrives shortly after Oracle’s recent cloud computing partnerships with Amazon Web Services (AWS) and Google Cloud, suggesting that while Oracle is expanding its cloud services strategically, it may also be trimming certain operational aspects for profitability and efficiency. As the fourth-largest global cloud provider, Oracle's approach to balancing expansion with streamlined operations could reflect a broader trend across the tech sector, as companies optimize their workforces amid economic pressures and shifting business priorities.

Despite the lack of official communication from Oracle, these layoffs have raised questions about the company's long-term strategies for both workforce management and global talent acquisition. 

The tech giant’s strategic pivot may also signal its adaptation to the competitive and fast-evolving cloud infrastructure market, even as it copes with the regulatory and financial demands of maintaining a large, global workforce.