Oracle’s dreaded 6 a.m. layoff email could return as September 1 fears grow

MUMBAI: Oracle could undertake another major round of job cuts around September 1, with analysts estimating that between 20,000 and 30,000 employees could be affected, according to medi reports.

The potential reduction, estimated by TD Cowen, would represent about 18 per cent of Oracle’s global workforce and comes as the technology company ramps up spending on artificial intelligence infrastructure and data centres.

The restructuring is reportedly aimed at generating billions of dollars in additional cash flow that could help fund Oracle’s expanding AI ambitions. The company has been committing significant capital to data centre infrastructure while also taking on additional debt, increasing pressure on its finances even as its cloud and AI businesses continue to grow.

The possible September cuts would follow a large-scale workforce reduction reported on March 31, when around 30,000 Oracle employees globally were reportedly informed that their positions had been eliminated.

Some employees reportedly received termination emails as early as 6 am ET. The messages, sent under the name “Oracle Leadership”, informed affected workers that their positions had been removed as part of an organisational change and that the day of notification would be their final working day.

Employee accounts shared on Reddit’s r/employeesOfOracle community and Blind described the process as abrupt, with some workers saying they had received no advance communication from managers or human resources teams.

Several employees also reported losing access to Oracle’s internal systems shortly after receiving their termination notices.

The cuts reportedly affected multiple parts of the business, including Revenue and Health Sciences and SaaS and Virtual Operations Services. Engineers and managers were among those said to have been impacted.

Employees who received termination notices were told that severance would be available after completing the required paperwork. Oracle said relevant documents would be sent through DocuSign to employees’ company email addresses.

Workers were also asked to provide personal email addresses for further communication, including frequently asked questions and separation documents.

The termination communication said the decision was based on Oracle’s current business requirements and confirmed that the affected roles were being eliminated. It also stated that severance would be provided subject to the company’s severance plan.

Oracle’s continued investment in AI infrastructure has become a central part of its growth strategy, particularly as demand for cloud computing and AI workloads increases. The spending, however, requires substantial capital at a time when the company is also managing higher borrowing needs.

If the reported September restructuring goes ahead, it would mark another significant step in Oracle’s workforce overhaul this year, highlighting the growing tension between the huge costs of building AI infrastructure and the need to keep spending and cash flows under control.