AI Infrastructure Push Triggers Oracle Layoffs Amid Tech Sector Cuts
Cloud computing company Oracle is laying off thousands of employees. According to a CNBC report, formal notices have been issued for the termination of 491 employees in Washington and Seattle, which will take effect from 1 June. However, this is only part of the overall layoffs, Reuters reports.
As of last May, Oracle had a workforce of 162,000 employees. For the current fiscal year, restructuring costs have been estimated at $2.1 billion, the majority of which is attributed to layoffs.
The company aims to intensify competition with Alphabet and Amazon by increasing investment in artificial intelligence (AI) infrastructure. Recently, Oracle announced an investment of $80 billion, a significant portion of which will be allocated to AI servers and data centers.
The news of layoffs has created uncertainty among Oracle employees on social media. Some employees have indicated that US-based remote workers are at higher risk. Oracle has stated that the layoffs will be carried out in phases over the coming months.
Meanwhile, data from Layoffs.fyi indicates that more than 70 companies in the technology sector have laid off approximately 40,480 employees this year. Last week, Meta laid off several hundred employees and is reportedly planning an additional 20 percent reduction. The impact of AI-driven automation is contributing to a growing trend of layoffs.
DBTech/BMT/OR
