Oracle Lays Off 12,000 Employees in India, Plans Another Round Amid AI Expansion Push

Employees were informed of “organisational changes” and told their roles would become redundant as the company moves to streamline operations, according to an internal email. The communication formally outlined the administrative restructuring process, indicating a shift in workforce requirements aligned with the company’s evolving business priorities.

“In India, around 12,000 employees have been laid off. The company is planning another mass layoff within a month,” said two people impacted by the retrenchment, including one from the company's human resource department. The statement underscores the scale and immediacy of the ongoing restructuring exercise.

The company has offered severance that includes 15 days’ salary for each completed year of service, a one-month notice period payout, leave encashment and gratuity where applicable, along with a two-month salary top-up. The severance package, however, is contingent on employees voluntarily resigning, according to the report, reflecting a conditional framework tied to compliance with company policy.

An ex-employee of Oracle, Merugu Sridhar, said that he was laid off in September for protesting against the 16-hour work shift that the company has in India. “I contacted my friends and those who are in human resources. They shared that most of the Indians working in the US with the company have been impacted because the local laws there are very strict when it comes to the retrenchment of their citizens,” Sridhar said, highlighting concerns over labor practices and regulatory differences.

The job cuts come as Oracle accelerates spending on data centres to meet surging demand for AI computing, even as it trails larger cloud rivals such as Amazon in scale. The company has been tapping debt markets to fund expansion and in January outlined plans to raise billion through debt and equity, signaling an aggressive investment strategy despite internal restructuring.

Oracle’s shares have fallen about 25% so far this year, underperforming other major technology companies. The layoffs and planned additional cuts reflect mounting pressure on the company to balance operational efficiency with large-scale investments, underscoring a critical phase in its global and India-focused business trajectory.