US tech major Oracle said to begin mass lay-offs in China as part of global move to cloud services
- The job cuts come at a sensitive time in US-China trade relations after the US says it will increase punitive tariffs on US$200 billion worth of Chinese products
US tech major Oracle has kicked off mass lay-offs in China that could involve hundreds of employees as part of a global headcount reduction program, according to a local media report citing people familiar with the situation.
The Silicon Valley-based company said it would cut jobs at its China research and development center in an internal meeting on Tuesday, with an estimated 500 jobs in Beijing expected to go first, according to the report from mainland business newspaper 21st Century Business Herald.
The lay-offs are part of a global reorganisation of its research and development activities as the company moves from traditional software to more cloud services, said the report.
“The adjustment to the China R&D centre is part of the changes being made to the global R&D team. The aim is to explore the best customer experience based on cloud technology and keep expanding our operational business,” Oracle China was quoted as saying in the internal meeting, according to the report.
Oracle’s job cuts come at a sensitive time in US-China trade relations after US President Donald Trump’s announcement that he will increase punitive tariffs on US$200 billion worth of Chinese products from 10 per cent to 25 per cent. There is growing pressure in the tech sector in particular, amid US efforts to block Huawei Technologies from the roll-out of 5G telecoms networks globally and after China in late April was accused by the director of the Federal Bureau of Investigation of attempting to “steal its way up the economic ladder” at US expense.
Phone calls to Oracle China’s corporate communication team went unanswered on Tuesday. Oracle did not immediately respond to an e-mailed request for comment sent to their California headquarters.