In a major shake-up, Oracle has reduced its India workforce by approximately 10%, impacting thousands of employees across its cloud and enterprise operations. The layoffs come on the heels of Oracle’s high-profile meeting with U.S. President Donald Trump and its new partnership with OpenAI, leading some analysts to connect the dots between geopolitics and corporate strategy.

While the company officially described the action as "restructuring," insiders suggest that the push to support AI-driven priorities particularly the $500 billion Stargate infrastructure initiative played a pivotal role. As Oracle ramps up data center investments and strengths its cloud services, especially for AI applications, legacy roles in India’s Oracle Cloud Infrastructure (OCI), Fusion ERP, AI/ML project management, and data center operations were hit hardest. Analysts highlight that this move aligns with national pressures to reduce reliance on offshoring and prioritize domestic sourcing in the U.S.

This transition underscores the broader tech industry trend: aggressively investing in AI while trimming broader operational costs often at the expense of established global teams. For India’s IT sector, the cuts are both a stark warning and a reminder of how strategic pivots can rapidly reshape employment landscapes.