REDWOOD CITY, Calif. — Oracle Corporation has eliminated over 300 jobs in its U.S. cloud division, with layoffs targeting employees in Redwood City, California, and Seattle, Washington, as the company redirects resources toward a $500 billion artificial intelligence infrastructure expansion. The cuts, confirmed through Worker Adjustment and Retraining Notification (WARN) filings on August 13, 2025, affect 143 workers in Redwood City and 161 in Seattle, according to TechRadar. The move comes as Oracle ramps up investments in AI data centers, including a $30 billion annual deal with OpenAI.
The layoffs, part of a broader restructuring, align with Oracle’s strategic shift to prioritize AI-driven cloud services, which saw a 52% revenue surge to $3 billion last quarter. “Cloud Infrastructure growth rate is expected to increase from 50% in FY25 to over 70% in FY26,” CEO Safra Catz noted in June, per TechRadar. Affected teams include Oracle Cloud Infrastructure (OCI) Enterprise Engineering, Fusion ERP, and AI/ML project management. While some cuts were performance-related, the primary driver is reallocating funds to AI buildouts, mirroring actions by Microsoft, Amazon, and Meta, which cut 15,000, 14,000, and 10,000 jobs, respectively, this year.
Oracle’s restructuring coincides with its headquarters move to Nashville, where it is aggressively hiring for AI-focused roles. A source told Data Center Dynamics that the reported U.S. figures may understate the total, with remote workers and global cuts, including in India, potentially reaching thousands. Social media posts on X expressed concern over the layoffs, with @sectradeideas noting Oracle’s cost-control measures amid soaring AI spending. As Oracle balances robust cloud growth with workforce adjustments, the tech giant’s pivot underscores the industry’s race to dominate AI infrastructure.
