Oracle Corp. (NYSE:ORCL) has reportedly eliminated more than 350 positions across California and Washington this week, according to state employment records, despite the database giant’s stock trading near all-time highs at $223.45.
Mass Layoffs Hit Multiple States
The Redwood Shores-based company filed Worker Adjustment and Retraining Notification (WARN) notices on Tuesday with California and Washington employment agencies, reported The Register. California’s Employment Development Department confirmed Oracle will cut 254 positions across three facilities, while Washington State will lose 101 jobs in Seattle, effective November 3.
Oracle’s Redwood Shores campus faces the largest reduction, with 187 employees affected. The Pleasanton facility, acquired through the 2005 PeopleSoft purchase, will eliminate 36 positions. Santa Clara operations will cut 31 jobs.
AI Spending Drives Cost-Cutting Strategy
Industry sources tell The Register that Oracle may be cutting thousands globally as part of a broader restructuring focused on AI infrastructure investments. One affected employee estimated at least 1,000 layoffs worldwide, with additional cuts planned for October.
“This all comes after reaching an all-time high stock price so it doesn’t make much sense from my lens,” a source told The Register.
Record Revenue Amid Workforce Reductions
Oracle reported $57.4 billion in fiscal 2025 revenue in June, an 8% increase year-over-year. CEO Safra Catz projected even stronger growth for fiscal 2026, citing “dramatically higher” revenue growth rates. The cuts primarily affect cloud-related positions, including software developers, business analysts, program managers, and IT specialists, according to the report.
Oracle has invested heavily in Oracle Cloud Infrastructure to compete with Amazon.com Inc. (NASDAQ:AMZN), Microsoft Corp. (NASDAQ:MSFT) and Alphabet Inc. (NASDAQ:GOOGL).
Tech Sector Follows Efficiency Playbook
Oracle joins other tech giants implementing workforce reductions to fund AI initiatives. Meta Platforms Inc. (NASDAQ:META) cut 21,000 jobs in 2023 during its “Year of Efficiency,” resulting in significant stock gains.
Salesforce Inc. (NYSE:CRM) also filed a WARN notice on Tuesday, according to The Register, for 93 Washington positions, following CEO Marc Benioff‘s Friday remarks about eliminating 4,000 support roles due to AI automation.
Oracle stock has gained 34.58% year-to-date despite Tuesday’s 0.82% decline to $223.45.
The company secured over $30 billion in cloud service agreements, including partnerships with OpenAI and government contracts offering 75% database software discounts through November.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Jonathan Weiss / Shutterstock
