Quick overview

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Oracle started informing workers that their positions were being eliminated. Although the company has not formally confirmed an exact global total, thousands of positions across multiple divisions—including some in Oracle Health and other units—are affected by the cuts.

Investors’ bets that Oracle is becoming leaner and more focused on its high-stakes AI ambitions are reflected in the stock’s 6% increase. In addition to positioning itself for what it (and many analysts) see as the next major growth wave in enterprise AI and cloud computing, the company hopes to offset the massive capital costs of data centers by reducing headcount.

Investors saw the action as an attempt by management to keep costs under control. Senior manager Michael Shepherd announced on LinkedIn on Tuesday that “senior engineers, architects, operations leaders, program managers, and technical specialists” had been fired.

Oracle executives have previously claimed that the company’s internal use of AI tools enables fewer employees to accomplish more tasks.

Another Oracle co-chief executive, Mike Silicia, said earlier this month, “Oracle’s use of AI coding tools is enabling smaller engineering teams to deliver more complete solutions to our customers more quickly.”

Silica noted at the time that these AI tools had aided in the creation of new techniques for automated Oracle service sales and lead generation. According to him, the company just created its new corporate logo.

It’s estimated that 10,000 employees have lost their jobs thus far due to a decline in the company’s use of Slack, Oracle’s internal messaging system. According to Shepherd, the “significant reduction in force” had nothing to do with worker performance. The impacted individuals were not released due to their actions or inactions,” he continued.

His post was one of many that detailed the layoffs. Kendall Levin, a former Oracle employee, stated on LinkedIn that she was “eliminated as part of the company’s mass reduction in force” from her position.