Why Oracle Laid Off 30k Employees Despite Strong Revenue Growth

[0:00]Hello all, my name is Krish Naik and welcome to my YouTube channel. So guys, recently Oracle has laid off somewhere around 30,000 employees, which is approximately 18% of their workforce. And through their reports, when they announced this, you know, they are some, they are saying that, okay, from this layoff, we are saving somewhere around 8 to 10 billion dollars, which they're going to invest somewhere else. And in this video, the reason of making this specific video is just to make you understand why this trend is happening with almost every other companies. Where these companies are focusing more on with respect to investment, and it will also help you to understand how the jobs in the future will be, where we are actually moving towards and many more things. First of all, for all those employees who has laid off, you know, 30,000 is definitely a big number. Uh, and this is basically happening globally, I feel extremely sad. Uh, but as you know, right, in this world everything is pivoting, every companies are trying to pivot to something else, they're trying to automate things and all. So, first of all, I will go ahead in understanding or telling you the reasons, uh, why this kind of layoff is basically happening from past, you know, couple of months I've seen this kind of news from every other big tech companies and everybody is following the same pattern, right? So, uh, after exploring more and more, you know, if I talk about Oracle, right, they are investing heavily in AI data centers. Uh, and they have also given a specific value, like how much they are going to invest in AI data centers along with AI projects that they are trying to build is somewhere around 156 billion dollar, right? And this also includes partnerships for various AI supercomputers, GPUs and many more things, right? So this is the major, major reason, uh, after understanding, and this reason is specifically for every other companies. If you have heard about open AI, right, recently they have taken huge amount of fundings and billions and billions of dollars. You can see that cloud cloud is also doing some exceptional work, they're having tie-ups, they are doing multiple things, they are raising, they are doing some amazing investments also. Along with that they also doing some amazing revenues out there, right? So in all these particular centers, every companies are also focusing on creating their own AI data centers, even if you heard about Elon Musk, I think, uh, I heard that Elon Musk is even planning, you know, to probably, um, go ahead and probably open data centers in the space, right? So that things are also happening, so obviously for all this kind of work, huge amount of investment is basically required, and similar in the case of Oracle, it is somewhere around 156 billion dollars, right? The second most core important reason, uh, that I could probably find, uh, as a pattern in all these specific companies is basically shifting to AI automation. If I talk about companies like Cloud, Cloud and all, right, uh, now some news are also coming up, and they have also announced in their blog that all the future development, specifically Cloud is only doing itself, right, for the next phase of development in their applications and all, right? Uh, you will be seeing that many, many companies are still, like they are heavily utilizing AI coding tools to improve efficiency, allowing small teams to deliver products, which has reduced the need for human personal in certain roles specifically. Uh, if you see some Cloud report also, they have shipped so many different projects, uh, like every day they are shipping around 500 to 600 products, right? And in GitHub, you know, you will be able to see that all this specific work is specifically happening with with the help of Cloud itself, right? So this is the main reason, you're shifting towards AI automation out there, and I think in the future, uh, AI automation basically means when you're using this kind of coding tools, it's just like you're talking to a software engineer, you're instructing a software senior software engineer to do something exceptional with respect to any kind of task. And the kind of speed is multiple times when compared to a normal software engineer, or senior software engineer that is there, right? So this is one of the most important, uh, reason, uh, what I have actually found out from all the reports. The second thing is that with respect to financial pressures, right, despite, you'll be able to see one more pattern, even the company's growing amazingly well, right? Every companies is growing amazingly well, uh, despite the strong revenue growth, the company is managing significant depth, it will be structuring to restructuring to free up many more capital expenditure so that they will be able to invest in all this kind of initiatives like AI data centers and all, right? So and that's the reason, that is also one of the reason why, uh, lot of roles, you know, which is, which they are thinking that it may not be used, it can be automated, uh, those roles have been specifically laid off, right? And overall, if you probably say that, uh, with respect to any companies that are happening, the layoffs are specifically happening in various, uh, sectors, you know. Let's say in the case of Oracle, right, in their report, they have said that, okay, Oracle Health and Sales, Cloud, um, all these particular sectors, and along with that sectors which can be actually automated with the help of AI, they have been affected, uh, a lot, you know. So in short, uh, they're trying to make such a pivot towards AI, you know, such considering that traditional software services towards cloud and AI infrastructure, whatever traditional legacy activities that they used to do has been completely automated with the new AI tools itself. So those are the various initiatives, uh, companies has been taking off, you know, and they are doing this. Again, uh, again, it's a sad news, obviously, it is a sad news for every person who is specifically working in the IT field, uh, but as you all know that everything, you have to pivot, you have to keep on pivoting so that, you know, uh, you should be in that way that, okay, you have some purpose in a company, uh, where you're doing some exceptional work. uh, and right now, if you see with respect to productivity, right, everybody is moving towards AI slowly, and I feel that in the upcoming five years, there are a lot of horizontal, vertical landscape changes that are going to specifically happen in the AI field. Okay, but from this video, the main aim was to make you understand how you also need to make sure that in the future these things are definitely going to come, there is no one that can actually prevent, right? That's the most saddest part, and the speed of things that are happening, that are happening towards it, right, every company is growing at the same pace, every company will make such a strategic decisions, like AI data centers is one of them. Every bigger companies you will be able to see that they will definitely be doing these things, and right now the way that things are going on from NVIDIA to Microsoft to probably open AI, cloud to various companies like Oracle, this things is going to happen. Okay, and uh, the best part is that we really need to be prepared with anything that comes, but you also need to set up your mindset, right, this thing is tend to happen and we also need to pivot ourselves with respect to the same thing. But again, uh, a very sad news to hear about, but so it is, we really need to be prepared as we go ahead, uh, start pivoting yourself, guys. Start, start thinking like what, how the feature is going to look like, you know, and start making that specific decision with respect to your learning, with respect to your upskilling. I hope you like this particular video, this was it from my side, I'll see you in the next video, thank you, have a great day, bye bye, take care.