According to recent news reports, Oracle Corp. (NYSE: ORCL) is planning to lay off over 900 employees working in its offices located in China. This move comes at the time when the tech company has shifted its focus to cloud-based products and services amid dwindling revenues from on-site installations.
The employees set to be fired are working in the company’s research and development division, which begs the question why the firing, yet the company is investing heavily in research? Well, the company refused to confirm the rumors, but issued a statement saying it continues to restructure its business in line with the push into cloud services.
While it may be hard for people not privy to the company’s inner workings, I believe the real reason why the employees are being fired is because they are redundant. It is highly likely that the push into cloud-based products might have rendered their current roles irrelevant, which is why the company has decided to let them go.