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Oracle began sending thousands of layoff notifications via a Tuesday morning email as the cloud infrastructure giant continues to refocus resources toward artificial intelligence and other data center investments.
Despite the end-of-month reduction in force – said to number in the tens of thousands and apparently impacting employees across the organization, including at its Oracle Health division – the company says it's continuing to expand its presence in Nashville, Tennessee, to support AI growth.
WHY IT MATTERS
Posts on social media show employees discussing impending layoffs across Oracle's business units, including among employees of Cerner, which Oracle Health acquired in 2021.
They said they received early morning emails telling them that their roles had been eliminated and that they would be eligible for a severance package.
Some members of one Reddit group said they received letters in Kansas City, where Cerner was headquartered. Many posted details about the number of internal Slack communication users dropping by more than 5,000 in a matter of hours on Tuesday morning.
The reduction is not just in the U.S., but internationally. For instance, the Times of India said it confirmed layoffs there in a report Tuesday morning, including manager roles, at business unit NetSuite's India Development Centre.
We've reached out to Oracle for a statement on layoffs, including at Oracle Health and AI. We will update this story if one is provided.
THE LARGER TREND
In September 2025, an unspecified number of Oracle Health employees reported receiving layoff communications.
Several large healthcare organizations have stopped using the Oracle EHR and switched to Epic Systems over the last few years.
Meanwhile, Seema Verma, general manager of Oracle Health and Life Sciences, touted the company's integration of AI into healthcare at the company's 2025 annual summit and told attendees that a new acute care EHR would be introduced in 2026.
Several financial publications have since reported that Oracle planned to restructure to finance its Stargate data center initiative with OpenAI.
Several Oracle Health and AI executives are reported to have departed the company earlier this month, including Suhas Uliyar, senior VP of product management for clinical and healthcare AI, and Sanga Viswanathan, executive VP of health and AI, via Bloomberg.
The recent reductions in force and reallocation of resources have concerned some lawmakers on Capitol Hill, who have qualms about the Department of Veterans Affairs' ongoing rollout of its new Oracle Health EHR, which has faced many challenges in recent years but is set to expand to many more VA medical centers this year.
In a March 20 letter to VA Secretary Doug Collins shared with Healthcare IT News, Rep. Michael Baumgartner, R-Wash., asked whether Oracle has provided the VA with assurances that veterans' care will not be affected by any of its planned changes.
We've reached out to Baumgartner's team to inquire about the VA's response and will update this story if information is provided.
Of note, Oracle said on March 26 that it is scaling up its Nashville offices by adding more than 116,000 square feet of leased office space to support rapid growth.
"This new building reflects our need to keep adding space as more and more people are drawn by the opportunity to be at the epicenter of Oracle's cloud and AI growth, as well as the city's vibrant tech community, and dynamic culture," said Scott Twaddle, senior VP of Oracle Cloud Infrastructure, in that announcement.
ON THE RECORD
"New candidates, as well as our existing Oracle employees, are increasingly energized by what we are building here in Nashville," Twaddle said in the statement.
Andrea Fox is senior editor of Healthcare IT News.
Email: afox@himss.org
Healthcare IT News is a HIMSS Media publication.
