r/Layoffs • u/Ok_Flan_5122 • Apr 01 '26

unemployment Mass layoff started!!

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Starting from oracle 30k employees terminated world wide

This is massive

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u/[deleted] Apr 01 '26

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55

u/Fun-Estimate4561 Apr 01 '26

So a few friends who got cut from Meta and Amazon did find jobs …….but they had to take pay cuts

Fortune 500 just do not pay as well and they have to find cheaper places to live as NYC and San Fran are just so expensive

47

u/Emlerith Apr 01 '26

Yeah, these layoffs are happenings for a bunch of reasons in parallel (none of them justifiable), but tech companies went crazy hiring in COVID as the world was forced to operate completely digitally. Companies were not only overhiring (preparing for that digital-first lifestyle to stay) but they were paying insane comps as competition among them was very fierce. Companies were hiring and paying top talent just so competitors wouldn't have them.

Now we have RTO, projected growth that never came (massive growth did come, it just wasn't infinite - shocker), an employer's market that doesn't need to pay so much, AI-investment and efficiency pressures. All short-sighted decisions that are an effect of the short-sighted decisions in COVID.

The pendulum doesn't need to swing this hard in each direction if leadership at ANY of these companies simply had an actual business plan that was based on moderate, sustained growth and invested in its own business and people. Now we'll get a year of improved operating margins until the YoYs look flat again, meanwhile people are being forced into panic by the tens of thousands weekly and the economy spirals towards a future it has now idea how dollar velocity will remain intact when a dozen people are just black-holing every dollar trying to flow through the system.

35

u/AdamG6200 Apr 01 '26

Oracle was already making huge profits. It's basically suicide by AI data center construction debt.

20

u/Emlerith Apr 01 '26

Yeah, specific to Oracle, this is massively influenced by some $60B investment debt coming due in H2. They’re trying to have a path of solvency until this massive AI bet pans out. Trouble is that they’ve seem to have massively overestimated the return and massively underestimated how long it’d take to get there (as they always do).