Oracle cuts 546 cloud jobs as AI infrastructure spending hits $95 billion

MUMBAI: Oracle’s cloud infrastructure business is undergoing a major reshuffle as the technology giant cuts hundreds of jobs while ramping up spending on artificial intelligence infrastructure.

A leaked document obtained by Business Insider shows that 546 employees in Oracle’s America Cloud Infrastructure organisation were laid off in the latest round of job cuts. The document, which lists the job titles and ages of employees eligible for severance benefits, was provided to comply with federal age-discrimination laws.

According to Business Insider, the 546 positions represent around 7.6 per cent of the 7,185 employees listed in the unit. Oracle has not disclosed the total number of employees affected by the latest cuts, while Business Insider could not establish whether the document covers the entire cloud infrastructure division.

The layoffs come as Oracle manages costs while committing billions of dollars to expanding its data centre footprint to meet rising demand for AI computing.

Software developers accounted for around 17 per cent of the eliminated positions, according to Business Insider. The most affected individual role was software developer III, with 57 employees let go.

Other heavily impacted positions included program manager IV and principal core infrastructure engineer.

The cuts come despite Oracle’s cloud division reporting a 121 per cent year-on-year increase in quarterly revenue in its latest earnings. The company is simultaneously increasing its investment in AI infrastructure, highlighting the cost pressures accompanying its rapid expansion.

While AI coding tools have fuelled expectations that software engineering roles could face significant reductions across the technology industry, recent data from job site Indeed pointed to a modest increase in software engineering job postings.

Oracle’s data centre support services division, which handles maintenance and technical support, was also significantly affected. Forty-one employees from the unit, including a vice president and two senior directors, were selected for termination, accounting for about 7.5 per cent of the cuts detailed in the document.

Management positions were another major target. Business Insider found that 128 of the eliminated roles, or around 23 per cent, contained the word “manager”. Program managers alone accounted for 61 terminations.

The restructuring reflects a wider technology industry push towards flatter organisational structures and fewer layers of management, a trend also reported at companies including Snap, Coinbase, Block and Meta.

The demographic information in the document also points to a significant impact on older employees. Business Insider reported that most of the affected workers in Oracle’s cloud infrastructure organisation were over 40, while around 16 per cent were aged 60 or above.

The latest layoffs follow a larger workforce reduction during Oracle’s 2026 fiscal year, which ended on 31 May. The company had reported a workforce of around 1,41,000 employees and had already reduced its headcount by 21,000, or about 13 per cent, during the fiscal year.

Oracle is now balancing those workforce reductions against an aggressive AI infrastructure expansion. The company has accumulated tens of billions of dollars in debt and expects to spend between $90 billion and $95 billion this year on new data centres to support growing AI demand.

The latest restructuring therefore puts the spotlight on how Oracle is reallocating people and costs even as its cloud and AI infrastructure businesses continue to expand rapidly.