Fewer new apps and functions
Abhishek Singh, a partner at the Everest Group, argues that Oracle’s decision, announced on Monday, to replace its longstanding CEO with two CEOs gives a big clue where the layoffs will likely hit.
The change in the CEO structure “makes it somewhat clear how this is likely to play out: with fast-growing cloud and AI infrastructure under one mandate, and industries, healthcare, and applications under the other,” Singh said. “That separation means Oracle can push aggressively into hyperscale growth while applying tighter discipline and consolidation in businesses that drag on margins or no longer fit the long-term strategy.”
In Singh’s view, that means, “[the layoff] pressure will fall heaviest on legacy application suites, overlapping corporate functions and some international operations. But even the infrastructure side is not immune — on-premises support and lower-margin infrastructure services could be candidates for carve-outs or divestitures, as Oracle sharpens its focus on hyperscale AI.”
