Oracle laid off more than 150 employees from its cloud division. As reported by Bloomberg, the fresh round of layoffs has affected professionals mainly in the Seattle area. The layoffs are said to be the part of strategic restructuring aimed at managing the soaring costs of its AI infrastructure investments. As per the report the teams across Oracle Cloud Infrastructure (OCI) including Enterprise Engineering, Fusion ERP, and AI/ML project management have been affected.

Oracle layoffs: Why the cuts

In the stock filing of June 2025, Oracle mentioned that workforce changes are part of “strategic adjustments, reorganizations, or performance management.” The tech giant also acknowledged that this type of restructuring may lead to “increased costs and temporarily reduced productivity” as employees will have to take up new roles or exit the organisation. The report also mentions that some layoffs were part of performance reviews, but the main goal is said to be of relocating resources towards Oracle’s aggressive AI buildout.Recently, Oracle also signed a landmark deal with OpenAI. As part of deal the company will offer 4.5 gigawatts of data center capacity.

The shift from Seattle to Nashville

Once considered a hub of Oracle’s cloud operations, Seattle has seen the burnt of layoffs. Oracle has now shifted its hiring focus to Tennessee, after its headquarters was relocated to Nashville last year. The company is now recruiting employees in cloud roles.

Cloud growth vs. cost pressures

Despite the latest round of layoffs, Oracle’s cloud business remains a strong performer. The company’s cloud revenue rose by 27% to $6.7 billion last quarter and the OCI revenue surged by 52% to $3 billion. Also, Oracle’s stock is trading near record highs.