Oracle To Complete 30,000 Job Cuts Amid AI Push; Fresh Claims Raise Questions Over Layoff Process

The software giant is reportedly nearing the end of one of its largest workforce reductions, even as its cloud and AI businesses continue to post strong growth.

Oracle is reportedly entering the final phase of a major workforce reduction that could see nearly 30,000 employees leave the company by mid-June. The layoffs, estimated to affect around 18% of Oracle’s global workforce, come despite strong financial performance driven by growing demand for cloud computing and artificial intelligence (AI) services.

The company recently reported robust third-quarter fiscal 2026 results, with revenue rising 22% year-on-year to $17.2 billion. Cloud revenue increased 44% to $8.9 billion, while Oracle Cloud Infrastructure’s AI segment recorded growth of 243%. Multicloud database revenue also surged by 531%.

Oracle is investing heavily in expanding its AI and cloud infrastructure capabilities. The company has committed nearly $50 billion in capital expenditure for fiscal 2026, with much of the spending directed toward new AI data centres and cloud facilities.

Executives have indicated that the layoffs are part of a broader strategy to redirect resources toward high-growth AI and cloud businesses as demand for computing capacity continues to rise.

The company’s remaining performance obligations, a key indicator of future contracted revenue, climbed 325% year-on-year to $553 billion, highlighting strong long-term demand for its services.

The restructuring programme has attracted additional attention following claims made in an anonymous post on a workplace discussion platform.

According to the post, some employees who were previously classified as hybrid workers were allegedly redesignated as remote employees before layoffs were carried out. The claims have not been independently verified, and no public evidence has been presented to support the allegations.

The post suggested that such reclassification could potentially affect how workforce reductions are assessed under certain provisions of the US Worker Adjustment and Retraining Notification (WARN) Act.

The WARN Act generally requires employers to provide advance notice before large-scale layoffs or facility closures. Employment law experts note that compliance can become more complex when remote and hybrid employees are involved, as factors such as reporting structures, assigned work locations and employee concentration at specific sites may influence how the law is applied.

At present, there is no public evidence indicating that Oracle violated any legal requirements. The company has not publicly responded to the allegations, and the number of employees who may have been affected by the reported reclassification remains unknown.

Meanwhile, some affected employees have criticised Oracle’s severance package, which reportedly includes tenure-based payouts capped at 26 weeks and requires employees to forfeit unvested stock awards. Reports suggest that a group of laid-off workers sought improved compensation terms, but the company did not revise the package.

As Oracle accelerates its investments in AI and cloud infrastructure, the company faces the challenge of balancing rapid business expansion with one of the largest workforce restructurings in its history.

Disclaimer: This article is for informational purposes only. Details regarding the alleged employee reclassification remain unverified, and no official findings of wrongdoing have been reported.