The wave of layoffs across tech companies continues. On Tuesday, March 31, Oracle, the American tech giant renowned for its database management systems, reportedly began cutting thousands of jobs. These layoffs are occurring at a time when the company’s shares have suffered a steep decline this year, even as it simultaneously ramps up its investments in Artificial Intelligence (AI) infrastructure.
The full scope of the layoffs remains unclear, as the company has yet to make an official announcement. These reports have also eroded investor confidence; Oracle’s shares have fallen 25 percent this year, a steeper decline compared to other major tech companies.
Oracle is Facing Several Challenges
Reportedly, the company is facing several challenges as it attempts to keep pace with the rapidly growing trend of Generative AI. Oracle’s core business, namely, the sale of database software, appears to be under significant pressure; investors are concerned that new AI models could diminish the demand for traditional data systems. Employees began receiving layoff notices as early as Tuesday morning.
This new round of layoffs appears to be impacting Oracle’s workforce across the globe. Notices sent to employees, reviewed by Business Insider, stated: “After careful consideration of Oracle’s current business needs, we have decided to eliminate your role as part of a broader organisational restructuring… Consequently, today marks your final day of employment.”
Also Read: Nokia Prepares to Lay Off 14,000 Employees; Indian Teams May Also Be Affected
