Oracle is riding some impressive highs, but for some employees, matters are far less exciting. Oracle’s cloud contracts are reaping historic results, with its stocks recently climbing 36% higher. The Oracle stock surge reached an all-time high since 1992, gaining $244 billion in market cap, putting it at $922 billion. The demand for AI-based cloud computing technology has grown significantly in 2025, and Oracle is leading the transformation.
Unfortunately for employees, Oracle’s stock gains have outshone the disappointing reports emerging from the company regarding job cuts. Oracle layoffs, particularly in the cloud units, have re-emphasized the fact that the culture of community and mutual success is fast fading.
Oracle’s stock gains added $244 billion to its market cap, but not all of its employees are celebrating. (Image: Pexels)
Oracle Stock Gains Remain Impressive, but Company Layoffs Cannot Be Ignored
Oracle’s stock gains yanked the company straight onto the path to join the trillion-dollar club this week. The Oracle stock surge upwards by 36% allowed it to hit a record high of $345.69, marking its biggest single-day jump since 1992. The surge was driven by a staggering 359% increase in remaining performance obligations, indicating explosive growth in its cloud business. The company’s $455 billion in remaining performance obligations far exceeded analyst expectations.
Oracle’s stock gains came as a result of the closing of key deals for the utilization of its cloud infrastructure with major players in the AI space. Oracle’s recent deal with OpenAI is particularly notable, as the AI company has signed a contract worth $300 billion in computing power over the next five years. This is one of the biggest cloud contracts to have been signed, marking a major milestone for Oracle and an ambitious gamble from OpenAI.
“Although profitability of AI workloads remains a key debate, it is clear that Oracle is capturing share in the large and rapidly growing market for AI infrastructure,” Bank of America analysts told CNBC.
The success wasn’t exclusive to Oracle either. Oracle co-founder Larry Ellison briefly surpassed Elon Musk as the richest man in the world, after his 41% stake in the company allowed his wealth to rise by $100 billion to around $392.6 billion, according to Forbes. Despite the excitement, however, Oracle’s stock gains came during a period of disruption for employees, many of whom were recently laid off.
Oracle’s Zoom Layoffs Sour the Success Story For Employees
No organization can find success without having employees to rely on to reinforce the infrastructure of the business and keep it functional. However, businesses also often find themselves clearing out some of these employees for one reason or another. Oracle’s cloud unit has been at the center of layoffs this week, with cuts centered around operations in the US and India.
Oracle’s layoffs occurred without much fanfare or any public announcements. Earlier reports of job cuts in the Oracle Cloud Infrastructure teams were reported last month by Bloomberg. In September, Oracle’s WARN filings in areas like Washington and California were reported, with minor cuts in both regions. Additional layoffs soon came up in Seattle, the Philippines, Canada, Europe, and India, adding up to around 3,000 employees.
Many workers weren’t aware that layoffs at Oracle were on the cards. Employees were merely asked to join meetings for “business updates,” following which they were provided details of their severance pay and then promptly cut off from accessing any company systems. Some employees who were due to receive stock benefits in the coming months also lost out on the opportunity, and the news now hits harder considering Oracle’s stock surge.
AI Investments Bring Both Good Tidings and Unfortunate Ones
From the outside, Oracle’s stock gains are exceedingly impressive and showcase just how AI investments are reshaping businesses worldwide. The deals made on the promises of AI gains have a central role to play in the unprecedented growth, but at the same time, the company’s employees have taken a hit to further the goals of the organization.
This isn’t an unfamiliar story, as we’ve seen it repeated by the likes of tech giants like Microsoft and Google already. Cutting expenses often helps increase investor confidence, and as a result, employees frequently take a hit to further the business’ overall performance. While only a small number of them are typically let go, in contrast to the size of the entire workforce, the impact is felt by employees who remain as well.
After a historic 35.95% stock gain, Oracle is celebrating its best day in over 30 years, but the layoffs give us something to consider. Let us know what you think. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.