Oracle faces an estimated 10000 more layoffs by year end, product changes likely
10 hours ago
- #Oracle
- #AI
- #Restructuring
- Oracle's $1.6 billion restructuring plan has only spent $415 million as of Aug. 31, with an estimated 10,000 more layoffs by December.
- Layoffs are expected to impact legacy applications, overlapping corporate functions, and international operations, while focusing on cloud and AI growth.
- New CEO structure suggests aggressive push into hyperscale growth and tighter discipline in less profitable or non-strategic areas.
- CIOs should assess if their Oracle stack aligns with the company's AI/cloud trajectory to avoid risks from potential product streamlining or divestitures.
- Agentic AI could enable layoffs by allowing customers to create custom apps or functionality, reducing the need for Oracle's workforce in app expansions.
- Oracle may trim older on-premises support, legacy applications, and non-strategic operations, doubling down on AI infrastructure, healthcare, and regulated industries.
- Forrester analyst notes corporate 'bloat' from acquisitions but doesn't foresee divestitures of well-adopted industry apps.
- Agentic AI capabilities may shift power to customers, though costs could rise as these features mature and become more sophisticated.