Oracle Layoffs and AI Impact on Employees

It has now been a week since the Oracle layoffs occurred, resulting in a significant number of employees losing their jobs around the world. This event has not only disturbed the tech sector but has also prompted larger discussions about employee value in the advancing age of artificial intelligence.

As organisations increase their investments in AI, the underlying stories are distressing for those directly affected. The tech layoffs have instilled a persistent fear of instability, particularly in the competitive job arena, along with an urgent necessity to swiftly adjust to the changing technology landscape.

On March 31, Oracle staff received a sudden email at 6 AM informing them of their layoffs, with immediate access to company resources revoked. A pregnant employee expressed her shock in a LinkedIn post, stating that there was “no call, no meeting, no manager, no warning”.

In India, it is believed that the number of affected employees reached as high as 12,000, leaving many individuals facing sudden unemployment and the emotional and financial turbulence that follows. While some are trying to adjust, many employees are making difficult decisions to return to their hometowns in order to manage expenses and re-evaluate their future options.

Brutal Reality of Oracle Layoffs

While Oracle remains quiet about the recent downsizing, those impacted have found solace in sharing their experiences on platforms like LinkedIn, Reddit, and X (formerly Twitter). Recently, a user on X recounted a story of a close friend who, after being affected by the Oracle layoffs, had to go back to his hometown of Bhubaneswar from Bengaluru to handle his finances prudently. Fortunately, the individual had made notable savings, including fixed deposits, allowing him to navigate this challenging period.

Another heart-wrenching narrative emerged from the situation where a woman, who is 30 weeks pregnant, was laid off. Her husband shared the harsh realities they face regarding job insecurity despite their hard work, criticising Oracle’s approach. He explained that she had been completely locked out of Oracle systems without prior notice.

“I am sharing this to reveal the harsh reality from within. This situation shows the human cost behind the news headlines. She is among the most skilled and dedicated individuals I know, and she deserves more than just an email,” he communicated.

Another post on LinkedIn highlighted an employee who had dedicated nearly 34 years to Oracle and was let go. The post pointed out that “Oracle recorded a 95% rise in net income last quarter and plans to invest $156 billion in AI data centres.”

The post further cautioned, “If you believe your job is secure, it’s time to reconsider.”

These anecdotes represent a fraction of the thousands affected, particularly in India, spanning various roles and divisions, yet Oracle has remained silent.

Oracle Layoff Severance Pay

In India, reports suggest Oracle is providing considerable support to those affected by the layoffs, including severance pay. Sources from Reddit indicate that employees from Oracle’s India Development Centre (IDC) in Bengaluru will receive 15 days of base salary along with leave encashment, ex gratia, which comprises 15 days of pay per annum of service alongside two months’ guaranteed pay.

Additionally, individuals will receive one month’s “gardening leave” pay and Rs 20,000 for insurance. However, the severance pay amount will depend on the employees’ tenure with the company, their roles, and other corporate conditions.

Oracle Bets Big on AI Investments

As Oracle undergoes workforce restructuring, it is also making substantial investments in AI infrastructure and data centres. In July 2025, the firm entered into a significant cloud computing agreement with OpenAI, which involves OpenAI committing to spend $300 billion on Oracle’s cloud infrastructure over five years, with Oracle constructing a large 4.5 gigawatt AI data centre across the United States.

Following the announcement of the OpenAI deal, Oracle’s stock saw an increase of approximately 35-43% in value within a single day, and Larry Ellison became one of the top three wealthiest individuals. However, despite these advancements, media reports indicate that Oracle’s cash flow has become negative, with total debts exceeding $100 billion. This signals that Oracle is taking substantial risks with its AI infrastructure initiatives, with direct ramifications being felt by its global workforce.