Layoffs: Tech sector layoffs again, 3,000 jobs in Oracle in crisis, know the reason

Layoffs: The news in India's tech sector has once again expressed concern about job losses. Oracle is preparing to eliminate around 3,000 positions in India, while Microsoft has put around 400 to 500 of its India-based employees under the Performance Improvement Plan (PIP). Both these developments are being linked to the changing needs of tech companies and their growing focus on new skills.

Oracle has nearly 3,000 jobs affected
According to media reports, Oracle is cutting around 3,000 jobs in India. This change comes at a time when investment in Artificial Intelligence (AI) and cloud computing is increasing rapidly.

Additionally, Microsoft is also making significant changes to its Indian workforce. According to reports, around 400 to 500 employees have been put on a performance improvement plan. This means that their performance will be reviewed periodically, and they will be given clear targets to improve their performance

Oracle's total number of employees has also decreased 
According to the report, Oracle's workforce has already declined. During the fiscal year ended May 31, the total number of employees of the company fell by about 21,000, representing a decline of about 13 percent. This reduced the number of employees of the company to about 141,000. The company has reported expenditures of about $1.8 billion under its 2026 restructuring plan. These costs are projected to increase to $2.1 billion in the future.

AI Heavy spending on data centers has become a major factor
One of the biggest challenges facing Oracle is massive investments in AI data centers. The company's capital expenditure for fiscal year 2026 is estimated to be around $55.7 billion, up from $21.2 billion the previous year

Oracle is building large-scale data centers to increase its AI computing power. To fund this expansion, the company has raised about $43 billion from the debt market and about $5 billion from share sales.

what is important for tech workers?
These moves by Oracle and Microsoft show that just having a job in the tech industry is no longer enough. Companies are rapidly moving towards AI and new technologies. Therefore, it is more important than ever for employees to learn skills such as AI, cloud computing, data, cyber security, and automation.