Around 50,000 tech job roles have been replaced with AI as companies like Oracle, Intel, Microsoft, and Nextdoor restructured their workforces. The nationwide layoffs have been attributed to firms pursuing large-scale investments in artificial intelligence and managing the AI-related costs.

Oracle confirmed changes in its cloud division, cutting off more than 150 workers in Seattle, the base of its cloud operations. Some of the affected roles include engineering and support positions. Oracle informed staff that performance factors contributed to their release. However, the company continues to hire in other business units.  

Tech companies slash jobs to boost AI and cloud spending

Oracle failed to provide an official statement regarding the number of employees laid off. However, the company stated in June that restructuring and workforce changes occur periodically concerning company strategies, operational reorganizations, and performance reviews. The report revealed that the actions would result in high near-term costs and decreased productivity as employees seek to adjust to the new structure. 

Oracle’s stock has traded near record highs recently following the growth in its cloud business. In June, it announced an agreement with OpenAI to secure 4.5 gigawatts of data center power capacity in the U.S. The deal forms part of initiatives to support AI workloads that require large compute power capacity. The database pioneer has committed tens of billions towards constructing new data centers that meet AI-related tasks. In its Q2 results, it reported a negative free cash flow reflecting the scale of investment it has entered into. 

Big tech firms are making similar moves industry-wide. Microsoft has laid off approximately 15,000 employees since the beginning of 2025. The affected roles include teams across engineering, sales, and support. Amazon and Meta have also laid off staff in 2025. Scale AI, a San Francisco-based firm specializing in AI data labelling, Nextdoor, the neighborhood-focused social networking platform, and Intel have all announced reductions in staff this year. Since January, the industry-wide layoffs have contributed to approximately 50,000 jobs lost across the technology sector.  

In June, Microsoft outlined plans to lay off multiple roles following the 6,000 job cuts in May. At least 22,000 jobs had already been cut in 2025 while 150,000 jobs were lost in 2024 across hundreds of companies. The job cuts occur as companies rush to expand spending in AI development and infrastructure. Amazon and Meta are investing more than $100 billion in AI.   

Industry-wide job cuts spread across multiple geographic locations

Oracle stated that strategy changes and performance outcomes influence workforce changes. It also noted that although such measures are intended to provide financial caution, they may involve transitional costs and short-term productivity issues. 

Industry analysts have noted that layoffs have affected various roles, from entry-level technical positions to senior management. The effects of the layoffs have been distributed across different locations, with much concentration in the Seattle area, the San Francisco Bay Area, and Austin, Texas.

Amid the layoffs, companies continue to recruit in other business units. Oracle’s cloud division indicates that its recruiting positions are aligned with priority growth areas. Roles related to AI infrastructure development, data centre operations, and high-demand enterprise software services are some of the key areas receiving employees. 

Cryptopolitan reported that about 41% of executives expect the tech workforce to shrink by 2030 due to AI automation. The report noted Nvidia’s CEO Jensen Huang’s remarks that while AI will make some jobs obsolete, it will also create new ones, and industries could grow if fresh ideas keep emerging.

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