Oracle reportedly axed hundreds or even thousands of jobs globally as part of its ongoing efforts to refocus the company around its struggling cloud business.
A company spokesperson would not comment on how many employees Oracle laid off or from what divisions. The company instead sent a statement via email: “As our cloud business grows, we will continually balance our resources and restructure our development group to help ensure we have the right people delivering the best cloud products to our customers around the world.”
The layoffs follow the recent departures of two top cloud executives. Both quit Oracle to join Google. In November 2018, Cloud boss Thomas Kurian left Oracle to become Google Cloud CEO. Oracle’s No. 2 cloud executive Amit Zavery jumped ship earlier this month and started his new post as Google Cloud vice president of engineering.
According to anonymous posts on TheLaoff.com, between 500 and 2,500 employees were cut last week from Oracle locations around the globe, including the U.S. and India. This included engineers and managers. One post said 43 people from the Oracle Management Cloud team in Silicon Valley were axed. Others said the company plans to cut thousands more employees in two more rounds slated for May and September.
IEEE Spectrum reports that Oracle VP Don Johnson sent an email to employees early last Friday with the subject line “Organizational Restructuring.” The email said the job cuts would strengthen the company’s Oracle Cloud Infrastructure (OCI) products and services.
“Today’s changes within OCI will better align with [CTO] Larry [Ellison’s] vision of the business,” Johnson wrote, according to IEEE Spectrum. “It will streamline our products and services, focus investments on our most strategic priorities, and help us to more effectively and rapidly deliver the full promise and reach of Oracle’s Gen 2 Cloud … OCI’s business is stronger than ever, and this team’s future is bright.”
Oracle starting building its Gen 2 Cloud nearly three years ago, and last year’s Oracle OpenWorld provided a coming out party for the bare metal offering. Despite this push, Oracle’s cloud business has been losing market share and disappointing investors while competitors like Amazon, Microsoft, Google, Alibaba, and IBM have prospered.