Team siliconindia

• Oracle cuts over 150 jobs in Seattle, some linked to performance, while continuing to hire in other areas.
• Layoffs come amid heavy spending on AI infrastructure, including a major OpenAI data center deal.
• Oracle moves focus to Nashville, reflecting broader workforce reorganizations and strategic changes.

Oracle Corp. has announced job cuts in its high-profile cloud division, reflecting the company’s efforts to manage costs amid heavy investments in artificial intelligence infrastructure. Employees affected by the reductions were informed this week, with some of the cuts reportedly linked to performance issues, according to sources familiar with the matter. Despite the layoffs, the cloud unit continues to hire.

The Seattle area, historically a hub for Oracle’s cloud operations, saw more than 150 positions eliminated, sources said. The move comes as Oracle shifts its corporate focus to Nashville, Tennessee, where it now lists more jobs than in any other state. Oracle did not respond to multiple requests for comment, and the full scope of the reductions remains unclear. The initial report on the cuts was first published by industry news outlet Datacenter Dynamics.

The layoffs reflect a broader trend among technology giants grappling with the soaring costs of AI development. Microsoft has cut roughly 15,000 positions this year, while Amazon and Meta have also reduced headcount in various divisions to control expenses.

Also Read: Microsoft Layoffs Top 15,000 in 2025 as AI Reshapes Strategy

Oracle’s stock, however, remains near record highs, driven by growth in its cloud business. Last month, the company struck a landmark deal with OpenAI for approximately 4.5 gigawatts of U.S. data center power. The agreement underscores Oracle’s ongoing investment in AI infrastructure, which has contributed to negative free cash flow for the fiscal year ending in May.

In a filing from June, Oracle noted that workforce changes are periodically made due to strategic shifts, reorganizations, or performance considerations. The company acknowledged that such restructurings could temporarily impact productivity and incur restructuring costs, while employees adjust to new roles or organizational changes.