The large tech company Oracle has cut over 21,000 jobs in the last twelve months. At the same time, the company is investing billions in Artificial Intelligence (AI). This large-scale job reduction shows a difficult side of the current AI boom.
This development at Oracle is a warning sign for the entire working world. It shows that AI does not only create new opportunities. AI also threatens existing jobs. This is about a major shift in power and money. Companies are relying on automation to save costs. At the same time, thousands of people are losing their jobs. This is the real price of progress we are now seeing.
According to a report by heise online, Oracle laid off 21,000 employees within one year. This means that a job was lost every 25 minutes. This aggressive approach is part of a larger transition. Oracle is investing heavily in AI technology and development. The layoffs directly show how quickly goals in the technology industry are changing.
For you as an employee, this means your skills must constantly evolve. If your job involves simple tasks that AI can perform, you should ask yourself how to redefine your value. It's about not just entering instructions for AI, but designing and controlling AI solutions. Otherwise, you could lose control over your career and income.
Companies must carefully calculate what is worthwhile and what is not. Those who do not invest in AI will fall behind the competition. Those who invest must also reallocate their employees. This can cause high short-term costs for severance packages. In the long term, however, personnel costs should decrease, and work should become more efficient. Companies must carefully check which data and processes they feed into AI systems. Otherwise, they could become dependent, from which they would later find it difficult to escape.
Despite the layoffs, new opportunities are also emerging. Companies that now invest in AI training and further education for their employees can gain an advantage over the competition. For individuals, opportunities lie in specializing in AI management, ethics, or the development of specific applications. Those who master the new tools can significantly increase their performance and develop new business models.
The biggest risk is ignoring this development. For employees, this means their jobs could become redundant. They would then not be prepared for it. For companies, there is a risk of investing in AI too late. Or they neglect the human element too much. Legal questions regarding data protection and the responsibility of AI systems are also not yet fully clarified. These pose further risks.
