Oracle layoffs in India fuel concerns about AI's impact on tech jobs

Oracle recently laid off a significant number of its employees in India, joining a list of global tech companies restructuring their workforces. While the company officially described the move as a "restructuring," industry observers connect the job cuts to the growing influence of artificial intelligence (AI) and automation.

The layoffs, which reportedly affected nearly 10% of Oracle's India workforce, primarily targeted roles in software development, cloud services, and customer support. These departments are central to the company's operations in India, a country that has long served as a key talent hub for it.

Industry experts see AI as a major factor

Arun Prakash M, Founder and CEO of HCL GUVI, says the layoffs are a clear signal, "The layoffs announced by Oracle in India highlights the focus on Artificial Intelligence by the global IT & ITES industry. Reports suggest that the layoff in India has primarily impacted software development, cloud services, and customer support verticals, and the company’s statement reveals ‘restructuring’ as the official reason. If the roles that were impacted by the layoffs are analysed, it becomes clear that these profiles are increasingly being replaced by AI-driven automation, something Indian talent must identify quickly. This also sheds some light on how the global job market is transitioning, and the importance of upskilling in AI, ML and other relevant disciplines to stay competitive in the coming years", he said. He explains that the impacted profiles are increasingly being automated by AI. This trend, he adds, sheds light on the global job market's transition and the urgent need for Indian professionals to upskill.

Oracle's decision aligns with a broader trend in the tech industry. Companies like Microsoft, Amazon, and Meta have also reduced staff this year, citing a need to streamline operations and reallocate resources to fund large-scale AI projects. Oracle's recent multi-billion-dollar agreement to provide data centre capacity to OpenAI underscores its own focus on AI infrastructure.

The job cuts in India highlight a crucial point for local tech talent. The roles most affected are those that AI can automate. To stay competitive, professionals must acquire new skills in AI, machine learning, and other related fields. This shift is not just about adapting to new tools; it is about fundamentally changing the way people work to stay relevant in a changing global market.