Introduction
Oracle is undergoing a major restructuring, with around 10,000 layoffs expected by the end of 2025. This move will directly affect AI products and legacy applications, raising key questions for CIOs and businesses relying on Oracle's platform.
Context
Oracle's $1.6 billion restructuring plan has just begun, with only $415 million spent so far. Forrester estimates most cuts are still pending, and their impact could be significant despite Oracle's global workforce of 160,000 employees.
Direct definition
Oracle's 2024 layoffs will mainly affect new application and feature development, while support for existing products is expected to remain stable.
The Challenge
Analysts are divided on how the cuts will affect legacy applications. The main risk is not daily support loss, but the possible reduction or sale of products not aligned with Oracle's AI/cloud strategy.
"For CIOs, the risk is not day-to-day product support disruption. The real risk is in portfolio focus: products and verticals that don’t map to Oracle’s AI/cloud trajectory could be streamlined, thinned down, or even sold off."
Singh, analyst
Solution / Approach
Oracle will continue supporting existing offerings, but fewer new apps or features are likely. CIOs should assess whether their Oracle infrastructure is central to the company's future strategy.
Conclusion
Oracle's restructuring is both a challenge and an opportunity: those relying on Oracle products should analyze their portfolio and prepare for possible changes, especially in AI and cloud.
FAQ
What is the impact of Oracle layoffs on AI products?
The cuts may slow new AI feature development, but support for existing products should continue.
Are Oracle legacy applications at risk?
Some legacy products may be reduced or sold if not aligned with the AI/cloud strategy.
How should CIOs respond to Oracle layoffs?
CIOs should assess if their Oracle systems are central to the company's future strategy.
Will Oracle's restructuring affect daily support?
Daily support for products is expected to remain stable, according to analysts.
What are the risks for companies using Oracle?
The main risk is the reduction of non-strategic products for AI and cloud.
Will Oracle sell some product lines?
Products not aligned with the strategy may be sold or streamlined.
How many layoffs are expected from Oracle in 2025?
About 10,000 layoffs are estimated by year-end.
Will Oracle's AI strategy change after the cuts?
The AI strategy will be strengthened, focusing on core and innovative products.