Oracle recently announced a significant leadership change, appointing two new CEOs to replace its longstanding CEO. Abhishek Singh, a partner at the Everest Group, believes this move indicates where potential layoffs may occur. By segregating responsibilities—one CEO overseeing the rapidly growing cloud and AI sectors, while the other manages industries, healthcare, and applications—Oracle aims to enhance efficiency. Singh suggests that layoffs will likely target legacy application suites, redundant corporate functions, and some international divisions. However, even the infrastructure segment may face scrutiny, with on-premises support and low-margin services possibly being considered for divestiture. This restructuring highlights Oracle’s strategic pivot towards hyperscale AI growth, aligning with current market demands while consolidating operations that hinder profit margins. As Oracle advances this strategy, businesses will need to adapt to the shifting landscape of the tech industry, particularly in cloud computing and AI innovation.
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