Oracle Lays Off 10% of India Workforce Amid Trump Talks and OpenAI Partnership
1. India Takes the Biggest Hit
India has long been one of Oracle's most important bases, employing close to 28,824 people across cities like Bengaluru, Hyderabad, Chennai, Pune, Noida, and Mumbai. According to reports, around one in ten employees in the country have lost their jobs, with teams in software development, cloud services, and customer support among the hardest hit. Many employees were reportedly caught off guard, receiving little clarity about severance packages or future opportunities. Oracle has described the decision as part of a global 'restructuring exercise,' but the sheer scale of job losses has raised concerns within the Indian tech industry.
2. Timing Raises Questions
The layoffs follow closely on the heels of Oracle chief Larry Wilson's meeting with President Trump at the White House. According to people familiar with the discussion, the talks centered around domestic hiring, national data security, and strategic technology partnerships. Soon after, Oracle announced a major deal with OpenAI, under which large-scale AI data processing will now shift to Oracle's infrastructure. Industry observers believe the restructuring may be part of a broader strategy to align more resources with the US market, echoing Trump's push for reduced offshoring and less reliance on H-1B visas.
3. Global Cuts, Not Just India
While India has been among the worst hit, the layoffs are not limited to the region. Reports suggest employees in the United States, Canada, and Mexico have also faced job cuts. In Seattle alone, more than 150 employees have been told their positions are no longer required. Mexico could reportedly see job losses on a scale similar to India. Employees in several other regions have been asked to attend undisclosed meetings, fueling concerns about an even wider global downsizing.
4. AI Boom Reshaping Tech Giants
The move also reflects a broader industry trend. With the AI race accelerating, tech companies are diverting billions toward data centers and advanced computing power while trimming headcount elsewhere. Microsoft has already cut 15,000 jobs this year, while Amazon and Meta have taken similar measures. For Oracle, the OpenAI partnership—tied to the ambitious 'Stargate' project worth nearly $500 billion alongside SoftBank—demands enormous investment, including an estimated 4.5 gigawatts of data center capacity in the US. Analysts say such capital-heavy commitments are forcing Oracle to reconsider its global workforce structure.
5. Impact on India's Long-Term Role
Oracle has been deeply embedded in India for more than two decades, leveraging the country's talent pool for software development, customer support, and its expanding cloud business. The company even extended operations into Tier-II and Tier-III cities such as Jaipur, Bhopal, and Thiruvananthapuram under its geo-expansion strategy. However, the latest round of cuts could deal a blow to employee morale and raise doubts about Oracle's long-term hiring in India. At the same time, the company continues to hire selectively in the US, suggesting a strategic shift in focus rather than a complete hiring freeze.
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