Oracle is laying off employees in its highly anticipated cloud computing division, at a time when this technology giant is investing heavily in artificial intelligence infrastructure. According to several sources, affected employees have received layoff notices this week. Although Oracle is controlling costs, its cloud computing division continues to hire.
According to insiders, the layoffs are partly related to employee performance issues, and the exact number of layoffs is not yet clear. In particular, the Seattle area, traditionally the core of Oracle's cloud computing division, has seen more than 150 employees laid off. At the same time, Oracle has moved its headquarters to Nashville and is hiring more positions in Tennessee than in any other state in the United States. An Oracle spokesperson has not commented on this.
This round of layoffs is not an isolated case. In response to rising AI costs, many tech giants are cutting expenses in other business divisions. Microsoft has already laid off about 15,000 employees this year, and Amazon and Meta Platforms have also carried out large-scale layoffs.