Major technology companies such as Oracle and Microsoft have announced significant changes to their teams in India on September 1, 2026. Oracle plans to cut around 3,000 positions, while Microsoft has targeted between 400 and 500 Indian employees for performance improvement plans. Such measures reflect a reorientation of the technology industry, which adjusts investments and workforce to emerging priorities, including artificial intelligence.
Pareekh Jain, executive director of market consultancy EIIRTrend, said Microsoft’s affected employees account for approximately 2% of its total staff in India. He explained that the performance improvement plan is part of a global company initiative.
Oracle’s cuts are part of a broader pattern of reducing its workforce. In the fiscal year ending May 31, Oracle’s workforce decreased by 21,000 people, or 13%, to about 141,000 employees. The company attributed part of this decrease to the adoption and implementation of artificial intelligence technologies, recording $1.8 billion in restructuring charges for the fiscal year under the “2026 Restructuring Plan”, with total costs projected at up to $2.1 billion.
Oracle’s reductions are largely driven by the financial burden of developing its data centers dedicated to artificial intelligence. The company’s capital expenditures in fiscal 2026 reached $55.7 billion, a significant jump from the previous year’s $21.2 billion, resulting in negative cash flow of $23.7 billion. To cover these expenses, Oracle tapped $43 billion in debt and raised an additional $5 billion through stock sales over the same period.
Such cuts are more comprehensive than Oracle’s routine layoffs, and some of the eliminated positions fall into job categories that the company anticipates needing less due to the advancement of artificial intelligence. However, the financial pressure resulting from the construction of data centers is the main motivating factor. Oracle did not respond when contacted for comment.
Despite the reductions, Oracle has reiterated strong demand for its cloud infrastructure. Co-CEO Clay Magouyrk stated on a recent earnings call that customer demand for AI computing power has outstripped available supply, citing $553 billion in contracted but not yet recognized revenue. In fiscal 2026, Oracle reported 17% revenue growth, with its cloud infrastructure segment expanding an impressive 77%.