Oracle is eliminating roughly 3,000 positions in India, while Microsoft has moved between 400 and 500 of its India employees onto performance improvement plans, according to The Economic Times. These actions reflect a broader industry shift as tech firms reorient spending and headcount around emerging priorities. Pareekh Jain, CEO of EIIRTrend, said the affected Microsoft employees represent about 2% of its India headcount, and the PIP is part of a worldwide initiative. Oracle's cuts are part of a broader pattern: its headcount shrank by 21,000 people, a 13% decline, over the fiscal year ending May 31, bringing total to approximately 141,000, with $1.8 billion in restructuring charges under its 2026 Restructuring Plan and anticipated charges up to $2.1 billion. The reductions are driven largely by the financial strain of its AI data center buildout, with capital expenditure for fiscal 2026 totaling $55.7 billion, up from $21.2 billion, and a cash outflow of $23.7 billion more than generated. Oracle tapped debt markets for $43 billion and raised $5 billion by selling stock. Despite the cuts, Oracle cited strong demand, with co-CEO Clay Magouyrk noting $553 billion in contracted but unrecognized revenue, and the company posted 17% revenue growth in fiscal 2026, with cloud infrastructure expanding 77%. Oracle stock rose about 5% on the news.
Oracle CorporationOracle's restructuring and AI buildout costs are offset by strong demand and revenue growth, with stock rising 5%.
Microsoft CorporationMicrosoft places 400-500 India employees on PIPs as part of a worldwide initiative, indicating performance-related headcount actions.
