Oracle, the American tech giant, is laying off staff in its cloud division, Bloomberg reported. Employees were informed earlier this week that their roles were being cut, though the exact number of reductions is still unclear.
Sources familiar with the matter said some of the layoffs were linked to performance issues, but noted that the division is still hiring even as the company works to control costs while investing heavily in AI infrastructure. “These types of restructurings have resulted, and may in the future result, in increased restructuring costs and temporarily reduced productivity while employees adjust to the restructuring,” Oracle has stated in its June filing.
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Even as Oracle trims jobs in its cloud division, its shares are trading near record highs, boosted by strong momentum in the business. Last month, the company struck a landmark deal with OpenAI to provide about 4.5 gigawatts of U.S. data center capacity under its Stargate initiative. While OpenAI will rent this vast computing power, Oracle Health has rolled out a next-generation Electronic Health Record (EHR) system, enhanced with advanced AI and voice tools, aimed at making it easier for clinicians to use.
The new “AI-first” EHR has been built entirely on Oracle Cloud Infrastructure, rather than being layered over Cerner’s older systems. It’s the first significant overhaul since Oracle acquired Cerner in June 2022 for $28 billion, a move aimed at strengthening its position in healthcare while expanding its cloud footprint. Following the deal, the Cerner brand was reintroduced to the market as Oracle Health.
Oracle said its new EHR is now available to U.S. ambulatory providers, pending final regulatory clearance, with plans to introduce acute care features in 2026 to serve more healthcare settings. While developing the new system, the company also upgraded its existing platform with tools like a clinical AI agent that blends generative AI, clinical intelligence, and multimodal voice and screen assistance. First announced as generally available last year, this AI agent is now fully integrated into the new EHR.
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“Instead of drowning in a sea of screens and clicks, clinicians can simply use voice commands to ask for the information they need, such as a patient’s recent lab results and current medications. Designed in partnership with providers on the front lines, this secure, voice-first solution is reimagining care by empowering clinicians with personalized, streamlined workflows,” Oracle Health executives said in the press release.
Oracle says its latest EHR has been trained on a wide range of clinical data, from medical conditions and lab results to medications and treatment pathways. According to company executives, this foundation allows its AI agents to better understand the context behind the data, delivering more precise and meaningful insights for healthcare providers.
Mutaz Shegewi, Senior Research Director, Worldwide Healthcare Provider AI, Platforms and Technologies, IDC, said, “Oracle continues to aggressively advance healthcare innovation by building an intelligent, comprehensive health ecosystem of solutions, built natively for healthcare providers, payers, life sciences, public health, and consumers.”