Workforce restructuring at Oracle and Microsoft
Employees at Oracle are bracing for another round of job cuts as the technology giant restructures its workforce while dramatically increasing spending on artificial intelligence and data-center infrastructure, according to The Economic Times. In India, Oracle employs roughly 30,000 people, and reports indicate that approximately 3,000 positions could be eliminated.
The latest round follows a much larger workforce reduction during Oracle's fiscal 2026. The company's annual filing showed that its global headcount fell from about 162,000 employees to 141,000, a reduction of roughly 21,000 positions, or 13% of its workforce. Oracle has linked workforce reductions in part to the adoption and deployment of AI technologies across its operations.
The manner in which some employees have reportedly been informed has added to anxiety among Oracle workers. Previous rounds of layoffs were reportedly communicated through brief Zoom meetings or early-morning emails sent under the name "Oracle Leadership." In some cases, employees have said their access to company systems and workplace communication platforms was revoked shortly after receiving notification.
The reported Oracle layoffs come amid broader workforce restructuring at Microsoft in India. According to a report, Microsoft has placed around 500 employees in India on performance improvement plans (PIPs). It is estimated that roughly 2% of Microsoft's India workforce—around 400-500 employees—could be affected by a global PIP exercise. Microsoft, however, clarified that being placed on a PIP should not automatically be interpreted as a layoff.
Expert perspectives on the impact
Pareekh Jain, chief executive of market research firm EIIRTrend, told ET that about 2% of Microsoft India's workforce, or approximately 400-500 employees, could be affected by the company's global PIP exercise. Jain estimated that Oracle's latest job cuts could affect between 2,000 and 3,000 employees, with the layoffs expected to take effect from September 1. Oracle employs around 30,000 people in India. The company had already eliminated about 12,000 jobs in the country during an earlier round of layoffs.
Gaurav Vasu of UnearthInsight said the reported 2% figure is part of a regular process, according to The Times of India. Industry executives point out that putting employees on PIPs does not necessarily mean the company is pursuing layoffs, as such plans can also form part of normal performance management processes.
In response to a query from the financial daily, a Microsoft spokesperson said the company follows a formal performance improvement plan and global voluntary separation agreement processes. Employees who fall short of the expectations associated with their roles may be offered coaching, placed on a PIP, given the option of voluntary separation, or terminated. "The share of employees globally on PIPs is a very small percentage," the spokesperson said, adding that Microsoft does not comment on individual personnel matters or provide regional breakouts.
Broader IT hiring trends
India's IT hiring landscape is undergoing a significant change. Layoffs have headlined the global tech landscape for over a year now and the trend continues as the industry faces one of its biggest disruptions in recent years. In India too the tech hiring and firing situation is evolving fast.
According to The Times of India, India's five largest IT companies reduced their combined workforce by a net 6,981 employees in FY26, after adding 12,718 in FY25. Some companies, including IBM, Accenture, Oracle Financial Services Software and Cognizant, have told candidates that joining dates depend on project availability, business needs and administrative processes.
These developments reflect a shift in priorities as technology companies reorganise their workforces and redirect spending towards newer areas, particularly AI-led initiatives. The moves come as the industry grapples with evolving workforce management practices and the need to balance legacy skills with new-age capabilities.