Oracle plans to cut around 3,000 jobs in India, while Microsoft puts hundreds of employees on performance improvement plans, signalling a seismic shift towards AI and automation in the country’s tech industry.
Oracle is cutting about 3,000 jobs in India as a wider reset in technology staffing gathers pace, while Microsoft has placed roughly 400 to 500 workers in the country on performance improvement plans, according to reports from Economic Times, Yahoo Finance and other outlets. The moves come as large software companies shift spending towards artificial intelligence, automation and other faster-growing areas, leaving some traditional engineering and support roles under pressure.
At Oracle, the scale of the reduction is significant because of the company’s sizeable India presence, which spans engineering, support and consulting work across several major cities. Startup Fortune reported that the cuts were expected to begin as the new fiscal quarter opened, and that Oracle had already reduced its global headcount by 21,000 over the course of the fiscal year, a decline the company has partly linked to AI adoption.
Microsoft’s move is different in form, but similar in effect. Rather than announcing direct redundancies, the company has put affected employees on performance improvement plans, a process that usually gives workers a limited period to meet set targets. Pareekh Jain, chief executive of EIIRTrend, told Economic Times and Yahoo Finance that the employees involved amount to about 2 per cent of Microsoft’s India workforce, and that the exercise is part of a global initiative. Industry observers said such plans do not automatically lead to dismissal, although they often become a prelude to job losses if standards are not met.
Taken together, the actions point to a tougher market for technology jobs in India, long a key base for multinational companies. Analysts cited by the reporting say firms are increasingly tightening campus hiring and directing investment towards AI-related roles, while junior and mid-level engineers working on routine tasks may face the greatest exposure as companies reorganise around newer skills.
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