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Oracle Corporation is facing a wave of criticism and financial fallout following its decision to lay off a significant portion of its Indian workforce, reportedly influenced by policy discussions between Oracle CEO Larry Ellison and US President Donald Trump. The move has triggered widespread concern across India’s tech sector and coincided with a sharp decline in Oracle’s stock, wiping out nearly Rs 1.3 trillion from Ellison’s personal net worth in a single trading session.
The layoffs, which affected approximately 10 percent of Oracle’s India-based employees, were described by the company as part of a global restructuring exercise. However, industry observers have linked the timing to Trump’s renewed push for domestic hiring and reduced reliance on offshore talent, particularly in cloud and software development roles.
Key Highlights from the Fallout
- Oracle laid off around 10 percent of its Indian workforce, impacting thousands of employees
- The decision followed Ellison’s meeting with President Trump on August 7, 2025
- Oracle’s stock dropped 7 percent in a single day, erasing $15 billion from Ellison’s net worth
- The layoffs are part of a broader restructuring tied to AI expansion and domestic hiring
- Oracle India had over 28,000 employees prior to the cuts, contributing significantly to global operations
Political Context and Strategic Shifts
Ellison’s meeting with Trump reportedly focused on national data security, AI infrastructure, and reshoring tech jobs. Shortly after, Oracle announced a major hiring push in its Virginia office while initiating layoffs in India, Mexico, and Canada. The optics of the move have drawn criticism from labor advocates and tech analysts, who argue that the decision undermines India’s role as a strategic development hub.
- Trump’s second-term policies emphasize reducing H-1B visa dependency
- Oracle’s restructuring aligns with US domestic employment goals
- AI partnerships with OpenAI and federal agencies are driving internal resource shifts
Impact on Oracle’s Global Workforce
The layoffs have disproportionately affected Oracle Cloud Infrastructure (OCI) teams in India, which have historically played a key role in backend development, technical support, and software engineering. Employees in Hyderabad, Bengaluru, and Pune reported receiving termination notices with minimal severance, prompting calls for regulatory intervention and labor protections.
- OCI teams in India and Seattle were among the hardest hit
- Layoffs extended to Mexico and Canada, with further cuts anticipated
- Oracle employees in other regions have been scheduled for undisclosed review meetings
Market Reaction and Financial Consequences
Oracle’s stock tumbled 7 percent following its fiscal Q2 earnings release, which missed Wall Street expectations. The company reported revenues of $14.06 billion, slightly below the projected $14.1 billion, triggering a sell-off that led to a dramatic drop in Ellison’s net worth. With a 42 percent stake in Oracle, Ellison lost approximately $15 billion in a single day, bringing his net worth down to $203 billion.
- Stock decline attributed to earnings miss and restructuring backlash
- Investor sentiment weakened by geopolitical risks and workforce instability
- Analysts warn of reputational damage and talent drain in key markets
Industry Response and Broader Implications
India’s tech community has reacted strongly to the layoffs, with calls for greater transparency and accountability from multinational corporations. The incident has reignited debates around labor rights, outsourcing ethics, and the vulnerability of foreign workers to political shifts in host countries.
- Industry bodies may seek policy safeguards for offshore tech workers
- Oracle’s brand image in India could suffer long-term reputational harm
- The move may influence hiring strategies of other US-based tech firms operating in India
Looking Ahead
Oracle’s restructuring and the resulting backlash underscore the complex interplay between corporate strategy, political influence, and global labor dynamics. As the company pivots toward AI-driven growth and domestic consolidation, its ability to retain international talent and maintain operational stability will be closely scrutinized.
Sources: TechStory, India.com, StartupTalky, Yahoo Finance, Economic Times.
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