August M
Technology moves fast. For a generation, the looming promise of automation has kept workers completely on edge.
While many people once viewed the rise of machines as a distant concern, that reality has finally arrived, reports DR News.
Automated future
The American database and software giant Oracle recently shed a massive portion of its staff. According to annual financial reports published by Dr News, the company employed 141,000 people at the end of May.
That single figure represents a sudden drop of 21,000 workers compared to the same period last year. It marks a 13 percent workforce reduction.
Company leadership pointed directly at automation to explain the downsize. They noted that streamlining operations with new software meant fewer human roles were required.
“The implementation of AI technologies across our activities has led to, and may continue to lead to, reductions in our workforce,” the financial statements state.
Profiting from change
The news comes as a surprise because Oracle is currently making massive financial gains. In fact, American media reported that the company is pulling in record revenue while securing a mountain of new business contracts.
Profits are soaring. Specifically, the tech firm generated a record high revenue of $67.4 billion, a surge driven by businesses rushing to adopt artificial intelligence systems.
To meet this relentless demand, Oracle plans to raise $50 billion to build advanced infrastructure. They already provide critical data solutions to major tech giants like Meta, Nvidia, OpenAI, TikTok, and xAI.
Wider industry shift
Saying goodbye to thousands of workers was not cheap. According to several US media outlets, Oracle spent a staggering $1.84 billion on severance packages and restructuring.
It was a massive increase. In fact, that amount is roughly five times what the company spent on layoffs during the previous year.
The BBC noted that while a major round of cuts was rumored in April, the true scale of the job losses only became clear with this new financial data.
These losses reflect a painful trend sweeping the wider technology sector. According to a report from the tracking site Layoffs.fyi, published by Reuters, 196 US tech companies laid off a total of 119,800 employees over the past year.
Sources: Dr News, BBC, Reuters, Layoffs.fyi
