In 2025, several major tech companies, including Oracle, Microsoft, and Intel, cut more than 50,000 jobs due to the adoption of artificial intelligence (AI) technologies and increased investments in cloud services.
Cuts at Oracle and Other Major Companies
Oracle confirmed layoffs of over 150 workers in its cloud division in Seattle, including roles in engineering and support. While the company did not specify the number of laid-off employees, it stated that the changes were based on performance factors. At the same time, Oracle continues to hire in other business units.
Impact of Strategic Changes and AI Development
According to Oracle, changes in strategy and performance outcomes influence workforce adjustments. Analysts note that layoffs have affected roles at all levels, from entry-level technical positions to management. This is linked to increased investments in AI by companies like Amazon and Meta, which plan to invest over $100 billion in these technologies.
Overall Trends and Future Projections
Reports indicate that about 41% of executives expect the tech workforce to shrink by 2030 due to automation from AI. Meanwhile, Nvidia's CEO Jensen Huang stated that while AI will make some jobs obsolete, it will also create new ones, potentially leading to growth in the industry.
Thus, the current layoffs in the tech sector are linked to long-term strategies by companies aimed at adapting to new market conditions and incorporating AI technologies. It is important to note that while some jobs may disappear, new job creation opportunities also arise as a result of this transformation.
