Structural shift in tech sector: What led to layoffs at Oracle

Bengaluru: With tech giant Oracle reportedly laying off 12,000 employees in India alone, the debate surrounding AI replacing jobs has intensified again.

Recently, software company Atlassian too announced that it would cut 10 per cent of its workforce- around 1,600- and self-fund further investment in AI. Recently, Oracle announced that it would be restructuring its business to support investments in AI and cloud infrastructure.

HR experts said layoffs reflect a structural shift in the technology sector as organisations pivot towards AI-led operating models and optimise traditional roles.

Aditya Narayan Mishra, MD and CEO of CIEL HR, said every day, we are seeing new roles emerging, while many are also becoming irrelevant. While this may create short-term disruption, it is also accelerating demand for new-age skills in AI, data, and digital engineering. He said for impacted employees, the immediate focus should be on reskilling and staying adaptable.

Layoffs such as those at Oracle reflect a broader transition underway in the tech industry, where companies are reorganising around AI and automation. This is less about sudden job loss and more about a gradual shift in the kinds of roles that are needed, Jaspreet Bindra, Co-Founder and CEO of AI&Beyond, said.

"For employees, the focus should be on staying relevant rather than reacting with alarm. That means building familiarity with AI tools, strengthening core problem-solving abilities, and deepening domain expertise. The advantage will lie with those who can adapt to changing job requirements and work effectively alongside technology, rather than seeing it as a threat. AI may not take your job, but someone using AI could," Bindra said.

According to Layoffs.fyi, which tracks tech layoffs, in 2026 alone, 71 tech companies have laid off 40,482 tech employees.

Kapil Joshi, CEO of IT Staffing, Quess Corp, opines that the ongoing shift is less about loss of jobs and more about realignment. Companies are investing in talent that can build, deploy, and scale digital systems, and professionals who align themselves with these shifts will continue to find strong opportunities in the market.

"Another shift we are seeing is the process in which companies evaluate and onboard talent. Hiring cycles, especially for niche skills in AI, cybersecurity, and advanced engineering, are becoming longer as organisations are far more rigorous in assessing capability and fit. While standard roles are still being closed in 45-50 days, roles in AI/ML, cybersecurity, and complex engineering are taking 75-90+ days, compared to 45-60 days earlier," Joshi said.

Compensation trends are also becoming more differentiated, with professionals in emerging skill areas continuing to command strong premiums, reflecting the clear gap between generic and high-demand talent, with GenAI talent seeing 15-20 per cent higher compensation and going up to 30-40 per cent premiums in niche cases," he added.

As companies adopt AI and automation, routine tasks are getting streamlined, while new roles are emerging around AI, data, cybersecurity, and product engineering. This shift is making continuous upskilling and reskilling essential for long-term career relevance, said Nipun Sharma, CEO, TeamLease Degree Apprenticeship.

"Employees today need to think of themselves as part of a dynamic talent ecosystem where skills evolve faster than job titles. The focus has to move towards building capabilities that complement technology, including problem-solving, digital fluency, and the ability to work alongside AI systems. Our data shows that organisations are increasingly investing in learning and development as a core business function, with continuous skilling becoming a baseline expectation across roles," Sharma added.