Oracle Corporation's decision to part ways with 30,000 employees globally has sent shockwaves through the organization and deepened concerns about the sustainability of software product companies in the era of artificial intelligence (AI) and automation.
The layoffs, which will see around 12,000-15,000 employees in India lose their jobs, are a result of the company's shift in spending from employee costs to AI-driven capital expenditures.
Experts say this trend is likely to make layoffs more common as companies trim pandemic-era headcount and move toward leaner operations.
Oracle's deal with OpenAI to purchase $300 billion in computing power over five years to build AI models is expected to begin next year, prompting the company to enable data centre capacity and cut costs.
The layoffs have left many employees feeling unsettled, with some describing their roles as redundant despite continuous reskilling.
Oracle declined to comment on the issue, but experts say the company's financial requirements and the shift in industry trends are driving the layoffs.
