Oracle, a major player in the tech industry, is planning significant layoffs. The company intends to cut approximately 30,000 jobs worldwide. This decision is part of a broader trend in the tech sector, where companies are reducing their workforce due to costs and the rising influence of AI technologies.
Many top tech firms like TCS, Infosys, Google, Microsoft, Intel, Amazon, HP, Apple, and Meta have already made similar moves to lower expenses by laying off employees. The primary reason behind Oracle’s decision is its recent partnership with OpenAI.
Oracle has entered into a massive $300 billion agreement with OpenAI, which requires substantial investment in building data centers. The company needs around $156 billion for the necessary AI infrastructure. However, banks are not willing to provide the required funds, forcing Oracle to rely on its resources, leading to the layoffs.
Through these layoffs, Oracle aims to save between $8 billion and $10 billion. In addition to reducing its workforce, the company is also focusing on its customers. Reports indicate that new customers are required to pay 40% of their fees in advance.
