Oracle India Cuts Jobs Again; Back-Office & Product Engineering Roles Worst Hit

Oracle's headcount in India has fallen to an estimated 27,000 employees, according to industry reports, as the technology company continues to trim jobs it considers routine while redirecting spending toward artificial intelligence infrastructure.

Oracle India layoffs: A steady decline through the year

Oracle's India workforce, once estimated at close to 50,000, has been reduced through successive rounds of layoffs since April 2026, when the company cut an estimated 10,000 to 12,000 jobs in the country as part of a global reduction of roughly 30,000 positions. Oracle's global workforce shrank by roughly 21,000 employees in fiscal 2026, with estimates suggesting India accounted for more than half of those reductions. Further cuts followed in September, with reports pointing to additional reductions running into the thousands across Bengaluru and Hyderabad.

AI cited as the driver

Across multiple rounds, the company and industry commentators have linked the cuts to AI adoption rather than performance issues. An analyst had earlier noted that the areas most affected were likely software engineering, since AI-based coding tools have dramatically improved software engineers' efficiency. Internal communications to affected staff have similarly cited 'organisational changes' and efforts to 'streamline operations', language employees say has repeated across each wave of cuts this year.

Roles under strain

ET reports that routine, process-heavy functions - including support, legacy database administration and back-office cloud services roles - have been more exposed than specialised AI or product-development positions. Moneycontrol reports that product engineering teams have absorbed a large portion of the job cuts as well. Oracle's co-chief executive has said AI coding tools now allow smaller engineering teams to deliver more complete solutions faster, meaning fewer people can do the same volume of work.

Severance and employee response

Employees affected in earlier rounds were offered severance packages that included a mix of per-year-of-service pay, notice-period compensation, gratuity and leave encashment, according to reports from earlier cuts in the year. Employee groups, including the All India IT and ITES Employees' Union, have criticised the pace and manner of the layoffs, alleging in earlier statements that restructuring was being used to justify job losses despite the company's strong quarterly performance.

With Oracle continuing to pour capital into AI data centre expansion, analysts expect further headcount adjustments in India, particularly in roles seen as replaceable by automation, even as the company continues to hire selectively for AI-focused engineering and cloud infrastructure positions.