Thousands of employees at Oracle (NYSE: ORCL) lost their jobs last week as the company pushes deeper into artificial intelligence investments, while also filing thousands of visa petitions for foreign workers.
The layoffs triggered immediate backlash online. Many affected workers questioned why the company would cut domestic roles while seeking talent from abroad. However, filings show Oracle submitted roughly 3,126 H-1B visa petitions across 2025 and 2026. Meanwhile, Amazon (NASDAQ: AMZN) filed about 2,675 petitions over the same period.
Some former employees described the situation as deeply frustrating. Others argued companies may be replacing higher-paid workers with lower-cost alternatives. However, companies typically use many visa filings to renew existing employees rather than hire new ones.
The broader tech sector faces mounting pressure. In fact, layoffs surged in early 2026. According to Challenger, Gray & Christmas, companies cut more than 52,000 jobs in the first quarter. That figure marks a 40 per cent increase compared to the previous year.
Additionally, artificial intelligence has emerged as a central factor. Many executives now claim AI allows companies to operate with fewer workers. Consequently, firms continue restructuring teams while increasing spending on automation tools.
At Oracle, employees reported widespread cuts across multiple departments. A senior manager said the layoffs affected engineers, architects, and program managers. Furthermore, internal discussions suggested the reductions were not tied to individual performance.
One employee estimated that about 10,000 workers may have been affected. That estimate came from observing a drop in active users on internal systems. However, Oracle has not confirmed an official number.
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Oracle participates in industry initiative
The layoffs appear to follow a familiar pattern. Tech companies have conducted repeated rounds of cuts in recent years. However, this time executives increasingly cite AI as the driving force.
Additionally, Oracle has invested heavily in artificial intelligence infrastructure. The company plans to spend at least USD$50 billion this year alone. It has also raised another USD$50 billion in debt to support further expansion.
Meanwhile, Oracle participates in a major industry initiative. The company joined OpenAI, SoftBank, and MGX in the Stargate project. This initiative aims to build massive data centre capacity across the United States.
Backers of Stargate say the project could reach USD$500 billion in total investment. They argue that future AI demand will require enormous computing power. Consequently, companies are racing to secure infrastructure ahead of competitors.
Other tech leaders have echoed similar views. For example, Meta (NASDAQ: META) has also discussed reducing headcount while expanding AI capabilities. Reports suggest Meta may consider cuts affecting up to 20 per cent of its workforce, although the company has disputed those claims.
Additionally, executives increasingly promote efficiency gains from automation. Some argue that AI tools allow smaller teams to achieve the same output. However, critics say this framing masks cost-cutting decisions rather than true innovation.
The visa filings have intensified the debate. Critics of the H-1B program argue it can disadvantage domestic workers. They claim companies may use the system to access cheaper labour. However, businesses maintain the program helps fill specialized roles that lack local candidates.
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Industry continuing to evolve
Furthermore, the timing has raised concerns. Workers question why companies pursue layoffs and hiring simultaneously. Some see it as a contradiction, especially during a period of rising unemployment in the sector.
At the same time, the industry continues to evolve rapidly. Companies face pressure to remain competitive in AI development. Consequently, they are reallocating resources toward infrastructure, data, and machine learning talent.
Other firms have also reduced staff this year. Pinterest (NYSE: PINS) and Epic Games have both announced cuts. Meanwhile, Amazon has continued restructuring parts of its workforce.
Additionally, many layoffs occur quietly. Employees often learn about job losses through internal emails or sudden account deactivations. This approach has drawn criticism for its lack of transparency.
Despite the backlash, companies show no signs of slowing AI investment. Oracle executives previously stated that automation enables fewer employees to handle more work. Consequently, workforce reductions may continue as AI adoption expands.
However, uncertainty remains around long-term outcomes. Some analysts believe new roles will eventually replace those lost. Others argue the transition may take years, leaving many workers displaced in the meantime.
Meanwhile, public sentiment continues to shift. Workers increasingly question corporate priorities and hiring practices. Additionally, policymakers may face growing pressure to review visa programs and labour protections.
The situation reflects a broader transformation across the tech industry. Companies are reshaping their workforce strategies as AI capabilities expand. Consequently, layoffs, hiring changes, and infrastructure spending now occur simultaneously rather than separately.
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