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Oracle Will Downsize Its Product Teams Because Of AI

Oracle Will Downsize Its Product Teams Because Of AI

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In a third-quarter earnings report on Tuesday, tech giant Oracle announced quarterly revenue growth above expectations and an increased sales outlook for the next fiscal year, along with a downsizing of some of its teams.

The stated reason why, as has become somewhat customary in Silicon Valley at this point, was artificial intelligence.

“AI models for generating computer code have become so efficient that we have been restructuring our product development teams into smaller, more agile and productive groups,” the company shared in the press release. “This new AI Code Generation technology is enabling us to build more software in less time with fewer people.”

Oracle’s stock has been battered recently, tanking more than 50% since a September peak that happened following the announcement of more data center plans with OpenAI under Stargate. Although Oracle shares once hit highs so grand on the coattails of the AI trade that it briefly turned its chairman Larry Ellison into the richest man on Earth, the culprit driving the drop is also artificial intelligence. Wall Street fears the impact AI will have on Oracle, whichever way demand for the technology may grow.

One aspect of that is the billions upon billions of dollars Oracle is committing to a major data center buildout. Just this fiscal year, the company is looking to spend $50 billion, roughly double what it spent a year earlier.

But with delays hitting some of these data center projects and the company’s increased reliance on debt markets, experts grew uneasy about Oracle’s ability to live up to its hefty commitments.

Meanwhile, the financial commitments have turned the company’s free cash flow negative. This past quarter, free cash flow sank to negative $24,736. Experts predict it will stay negative until 2030.

In a crunch for cash, company executives have begun planning thousands of job cuts across the company, starting as early as this month, according to a Bloomberg report from last week, including effectively freezing hiring in its cloud division.

Oracle is a bellwether for market confidence in AI, and the free cash flow question quickly infected other major players in the industry. AI hyperscalers Amazon, Alphabet, Meta, and Microsoft all reported eyewatering capex figures in earnings reports last month, sparking a fear that the spending is accelerating rapidly while actual returns from AI adoption fail to materialize. Those fears added to the growing AI bubble discussion, even pushing Nvidia CEO Jensen Huang to spend a good chunk of his company’s earnings call assuring investors that the hyperscalers (who are also incidentally Nvidia’s top customers) will see cash flow growing as more spending translates to revenue.

Oracle’s earnings beat, along with improved sales guidance for 2027, are important for convincing investors that demand for AI will continue to outpace supply. That, combined with the assurance that AI is raising productivity in the company, could help Oracle quell some of those fears around the future of both the company and the AI trade.

The other side of the AI impact coin is if AI becomes too powerful and makes software companies obsolete, in a feared “SaaSpocalypse.” Last month, on the heels of Anthropic’s Claude Cowork release and a Substack scenario outlining this possibility, investors began selling software provider stocks in a frenzy. Oracle was one of the software stocks impacted, but executives took to the earnings call on Tuesday to convince investors that their company was an exception.

“The use of AI-coding tools inside Oracle is enabling smaller engineering teams to deliver more complete solutions to our customers more quickly. We are building brand-new SaaS products using AI and also embedding AI agents right into our existing applications and suites,” co-CEO Mike Sicilia told investors. “Yes, some smaller or single-focus SaaS players may well be disrupted, but Oracle will not be among them.”

With regard to either story, investors may have been satisfied enough for now with Oracle’s response on Tuesday, as the stock rose more than 8% following the release.

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When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

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announces a round of layoffs. Through May of 2026, companies announced that close to 90,000 job cuts were tied to AI, and, by some accounts, up to 15% of U.S. jobs are projected to be eliminated by AI over the next five years. Promises from the tech industry that AI will also create new jobs does little to ease fears, especially for the generation wondering if anyone will be hiring when they graduate. 

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Headcount also rose across functions, including engineering, sales, administration, customer service, finance, marketing, and scientist roles. The strongest job growth among high-intensity adopters was in the information sector, which includes software, internet, media, and tech-adjacent firms. 

Despite these positive signals, the data isn’t as rosy as it seems. It skews heavily towards tech-forward, knowledge-work firms — ones that might have VC-backing and are growing fast anyway, making it difficult to say whether AI is contributing to the hiring or just showing up at companies that are expanding anyway.

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It also counters claims that AI is killing all junior jobs. Recent research from Goldman Sachs found that AI has already erased about 16,000 net jobs per month over the past year, with Gen Z and entry level workers taking the brunt of the burden. But in tech-forward firms, the report finds that entry-level headcount actually rose by 12%.

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A recent report from Ramp and Revelio Labs, which track enterprise AI spend and workforce records from nearly 22,000 companies, respectively, complicates that gloomy narrative. 

The report found that companies spending heavily on AI are growing headcount faster, even in the entry-level roles that many fear are doomed. According to the report, “high-intensity adopters” — firms that spend on average $30 per employee per month on AI in the first three months — saw headcount increase 10.2%.

Headcount also rose across functions, including engineering, sales, administration, customer service, finance, marketing, and scientist roles. The strongest job growth among high-intensity adopters was in the information sector, which includes software, internet, media, and tech-adjacent firms. 

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So what can we take away from this? Perhaps that AI isn’t always a tool for labor substitution, but that it can be a tool for firm-expansion instead. 

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But companies that buy subscriptions and run pilots, yet did not go on to make sustained investments, don’t tend to see any gains in headcount, per the report. 

That sets up the potential for a widening gap between firms that have the resources — like capital, technical staff, founder networks, and management bandwidth — to turn AI adoption into actual business gains and those that are stuck experimenting with subscriptions. In other words, this report suggests that firms that already have the resources are the ones who will see the largest gains. 

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When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

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MacBook and iPad models in India. The updated prices show an increase of around 20% to 42% across many devices. However, the company has not increased iPhone prices at this stage. Apple says the rapid rise in costs of memory and storage components, driven by growing AI demand, led to the decision.

Why Did Apple Increase MacBook and iPad Prices?

Why Has Apple Increased MacBook and iPad Prices by Up to ₹70,000? Apple has announced a major price hike for several MacBook and iPad models in India. The updated prices show an increase of around 20% to 42% across many devices. However, the company has not increased iPhone prices at this stage. Apple says the rapid rise in costs of memory and storage components, driven by growing AI demand, led to the decision. Why Did Apple Increase MacBook and iPad Prices? This price increase has been justified by Apple due to rising costs of producing its products. Specifically, the prices of memory and storage have risen due to strong demand from AI data centers. These components are used in nearly every Mac and iPad. According to Apple, the cost of memory chips and RAM has increased rapidly over the past several months. The company said it absorbed these higher expenses before deciding to revise product prices. Apple believes the current rise in component costs is unlike anything it has seen before. Although iPhone prices remain unchanged today, industry analysts expect Apple to review them if production costs continue to rise. Which Apple Products Have Become More Expensive? The price hike isn’t limited to a handful of devices. Almost all of Apple’s hardware lineup in India has become more expensive, including iPads, Macs, MacBooks, HomePods, and even the Apple TV lineup. The only major exception, for now, is the iPhone, whose prices remain unchanged. Among the biggest increases, the base iPad now starts at ₹49,990 instead of ₹34,990, while the iPad Air has jumped from ₹64,900 to ₹89,900. The flagship iPad Pro has also seen a significant hike, with prices now starting at ₹1,39,900. Apple’s Mac lineup has also become noticeably more expensive. The Mac mini M4 now starts at ₹94,900 (up from ₹59,900), while the iMac M4 has climbed to ₹1,74,900 from ₹1,34,900. The Mac Studio has also received a substantial increase, with the M4 Max model now costing ₹2,79,900 and the M3 Ultra variant reaching ₹5,99,900. The same trend continues across Apple’s notebook lineup. The MacBook Air M5 now starts at ₹1,49,900 instead of ₹1,19,900, while the base 14-inch MacBook Pro M5 has jumped from ₹1,69,900 to ₹2,39,900. The top-end MacBook Pro M5 Max now costs ₹4,99,900, up from ₹3,99,900. Even Apple’s home products haven’t escaped the price revision. The HomePod now costs ₹44,900, the HomePod mini is priced at ₹15,900, and the Apple TV 4K lineup has received one of the steepest hikes, with the 64GB model increasing from ₹14,900 to ₹25,900. #Apple #Increased #MacBook #iPad #Pricesapple

This price increase has been justified by Apple due to rising costs of producing its products. Specifically, the prices of memory and storage have risen due to strong demand from AI data centers. These components are used in nearly every Mac and iPad.

According to Apple, the cost of memory chips and RAM has increased rapidly over the past several months. The company said it absorbed these higher expenses before deciding to revise product prices. Apple believes the current rise in component costs is unlike anything it has seen before. Although iPhone prices remain unchanged today, industry analysts expect Apple to review them if production costs continue to rise.

Which Apple Products Have Become More Expensive?

iPad air different colors

The price hike isn’t limited to a handful of devices. Almost all of Apple’s hardware lineup in India has become more expensive, including iPads, Macs, MacBooks, HomePods, and even the Apple TV lineup. The only major exception, for now, is the iPhone, whose prices remain unchanged. Among the biggest increases, the base iPad now starts at ₹49,990 instead of ₹34,990, while the iPad Air has jumped from ₹64,900 to ₹89,900. The flagship iPad Pro has also seen a significant hike, with prices now starting at ₹1,39,900.

Apple’s Mac lineup has also become noticeably more expensive. The Mac mini M4 now starts at ₹94,900 (up from ₹59,900), while the iMac M4 has climbed to ₹1,74,900 from ₹1,34,900. The Mac Studio has also received a substantial increase, with the M4 Max model now costing ₹2,79,900 and the M3 Ultra variant reaching ₹5,99,900. The same trend continues across Apple’s notebook lineup. The MacBook Air M5 now starts at ₹1,49,900 instead of ₹1,19,900, while the base 14-inch MacBook Pro M5 has jumped from ₹1,69,900 to ₹2,39,900. The top-end MacBook Pro M5 Max now costs ₹4,99,900, up from ₹3,99,900.

Even Apple’s home products haven’t escaped the price revision. The HomePod now costs ₹44,900, the HomePod mini is priced at ₹15,900, and the Apple TV 4K lineup has received one of the steepest hikes, with the 64GB model increasing from ₹14,900 to ₹25,900.

#Apple #Increased #MacBook #iPad #Pricesapple">Why Has Apple Increased MacBook and iPad Prices by Up to ₹70,000? Apple has announced a major price hike for several MacBook and iPad models in India. The updated prices show an increase of around 20% to 42% across many devices. However, the company has not increased iPhone prices at this stage. Apple says the rapid rise in costs of memory and storage components, driven by growing AI demand, led to the decision. Why Did Apple Increase MacBook and iPad Prices? This price increase has been justified by Apple due to rising costs of producing its products. Specifically, the prices of memory and storage have risen due to strong demand from AI data centers. These components are used in nearly every Mac and iPad. According to Apple, the cost of memory chips and RAM has increased rapidly over the past several months. The company said it absorbed these higher expenses before deciding to revise product prices. Apple believes the current rise in component costs is unlike anything it has seen before. Although iPhone prices remain unchanged today, industry analysts expect Apple to review them if production costs continue to rise. Which Apple Products Have Become More Expensive? The price hike isn’t limited to a handful of devices. Almost all of Apple’s hardware lineup in India has become more expensive, including iPads, Macs, MacBooks, HomePods, and even the Apple TV lineup. The only major exception, for now, is the iPhone, whose prices remain unchanged. Among the biggest increases, the base iPad now starts at ₹49,990 instead of ₹34,990, while the iPad Air has jumped from ₹64,900 to ₹89,900. The flagship iPad Pro has also seen a significant hike, with prices now starting at ₹1,39,900. Apple’s Mac lineup has also become noticeably more expensive. The Mac mini M4 now starts at ₹94,900 (up from ₹59,900), while the iMac M4 has climbed to ₹1,74,900 from ₹1,34,900. The Mac Studio has also received a substantial increase, with the M4 Max model now costing ₹2,79,900 and the M3 Ultra variant reaching ₹5,99,900. The same trend continues across Apple’s notebook lineup. The MacBook Air M5 now starts at ₹1,49,900 instead of ₹1,19,900, while the base 14-inch MacBook Pro M5 has jumped from ₹1,69,900 to ₹2,39,900. The top-end MacBook Pro M5 Max now costs ₹4,99,900, up from ₹3,99,900. Even Apple’s home products haven’t escaped the price revision. The HomePod now costs ₹44,900, the HomePod mini is priced at ₹15,900, and the Apple TV 4K lineup has received one of the steepest hikes, with the 64GB model increasing from ₹14,900 to ₹25,900. #Apple #Increased #MacBook #iPad #Pricesapple

and iPad models in India. The updated prices show an increase of around 20% to 42% across many devices. However, the company has not increased iPhone prices at this stage. Apple says the rapid rise in costs of memory and storage components, driven by growing AI demand, led to the decision.

Why Did Apple Increase MacBook and iPad Prices?

Why Has Apple Increased MacBook and iPad Prices by Up to ₹70,000? Apple has announced a major price hike for several MacBook and iPad models in India. The updated prices show an increase of around 20% to 42% across many devices. However, the company has not increased iPhone prices at this stage. Apple says the rapid rise in costs of memory and storage components, driven by growing AI demand, led to the decision. Why Did Apple Increase MacBook and iPad Prices? This price increase has been justified by Apple due to rising costs of producing its products. Specifically, the prices of memory and storage have risen due to strong demand from AI data centers. These components are used in nearly every Mac and iPad. According to Apple, the cost of memory chips and RAM has increased rapidly over the past several months. The company said it absorbed these higher expenses before deciding to revise product prices. Apple believes the current rise in component costs is unlike anything it has seen before. Although iPhone prices remain unchanged today, industry analysts expect Apple to review them if production costs continue to rise. Which Apple Products Have Become More Expensive? The price hike isn’t limited to a handful of devices. Almost all of Apple’s hardware lineup in India has become more expensive, including iPads, Macs, MacBooks, HomePods, and even the Apple TV lineup. The only major exception, for now, is the iPhone, whose prices remain unchanged. Among the biggest increases, the base iPad now starts at ₹49,990 instead of ₹34,990, while the iPad Air has jumped from ₹64,900 to ₹89,900. The flagship iPad Pro has also seen a significant hike, with prices now starting at ₹1,39,900. Apple’s Mac lineup has also become noticeably more expensive. The Mac mini M4 now starts at ₹94,900 (up from ₹59,900), while the iMac M4 has climbed to ₹1,74,900 from ₹1,34,900. The Mac Studio has also received a substantial increase, with the M4 Max model now costing ₹2,79,900 and the M3 Ultra variant reaching ₹5,99,900. The same trend continues across Apple’s notebook lineup. The MacBook Air M5 now starts at ₹1,49,900 instead of ₹1,19,900, while the base 14-inch MacBook Pro M5 has jumped from ₹1,69,900 to ₹2,39,900. The top-end MacBook Pro M5 Max now costs ₹4,99,900, up from ₹3,99,900. Even Apple’s home products haven’t escaped the price revision. The HomePod now costs ₹44,900, the HomePod mini is priced at ₹15,900, and the Apple TV 4K lineup has received one of the steepest hikes, with the 64GB model increasing from ₹14,900 to ₹25,900. #Apple #Increased #MacBook #iPad #Pricesapple

This price increase has been justified by Apple due to rising costs of producing its products. Specifically, the prices of memory and storage have risen due to strong demand from AI data centers. These components are used in nearly every Mac and iPad.

According to Apple, the cost of memory chips and RAM has increased rapidly over the past several months. The company said it absorbed these higher expenses before deciding to revise product prices. Apple believes the current rise in component costs is unlike anything it has seen before. Although iPhone prices remain unchanged today, industry analysts expect Apple to review them if production costs continue to rise.

Which Apple Products Have Become More Expensive?

iPad air different colors

The price hike isn’t limited to a handful of devices. Almost all of Apple’s hardware lineup in India has become more expensive, including iPads, Macs, MacBooks, HomePods, and even the Apple TV lineup. The only major exception, for now, is the iPhone, whose prices remain unchanged. Among the biggest increases, the base iPad now starts at ₹49,990 instead of ₹34,990, while the iPad Air has jumped from ₹64,900 to ₹89,900. The flagship iPad Pro has also seen a significant hike, with prices now starting at ₹1,39,900.

Apple’s Mac lineup has also become noticeably more expensive. The Mac mini M4 now starts at ₹94,900 (up from ₹59,900), while the iMac M4 has climbed to ₹1,74,900 from ₹1,34,900. The Mac Studio has also received a substantial increase, with the M4 Max model now costing ₹2,79,900 and the M3 Ultra variant reaching ₹5,99,900. The same trend continues across Apple’s notebook lineup. The MacBook Air M5 now starts at ₹1,49,900 instead of ₹1,19,900, while the base 14-inch MacBook Pro M5 has jumped from ₹1,69,900 to ₹2,39,900. The top-end MacBook Pro M5 Max now costs ₹4,99,900, up from ₹3,99,900.

Even Apple’s home products haven’t escaped the price revision. The HomePod now costs ₹44,900, the HomePod mini is priced at ₹15,900, and the Apple TV 4K lineup has received one of the steepest hikes, with the 64GB model increasing from ₹14,900 to ₹25,900.

#Apple #Increased #MacBook #iPad #Pricesapple">Why Has Apple Increased MacBook and iPad Prices by Up to ₹70,000?

Apple has announced a major price hike for several MacBook and iPad models in India. The updated prices show an increase of around 20% to 42% across many devices. However, the company has not increased iPhone prices at this stage. Apple says the rapid rise in costs of memory and storage components, driven by growing AI demand, led to the decision.

Why Did Apple Increase MacBook and iPad Prices?

Why Has Apple Increased MacBook and iPad Prices by Up to ₹70,000? Apple has announced a major price hike for several MacBook and iPad models in India. The updated prices show an increase of around 20% to 42% across many devices. However, the company has not increased iPhone prices at this stage. Apple says the rapid rise in costs of memory and storage components, driven by growing AI demand, led to the decision. Why Did Apple Increase MacBook and iPad Prices? This price increase has been justified by Apple due to rising costs of producing its products. Specifically, the prices of memory and storage have risen due to strong demand from AI data centers. These components are used in nearly every Mac and iPad. According to Apple, the cost of memory chips and RAM has increased rapidly over the past several months. The company said it absorbed these higher expenses before deciding to revise product prices. Apple believes the current rise in component costs is unlike anything it has seen before. Although iPhone prices remain unchanged today, industry analysts expect Apple to review them if production costs continue to rise. Which Apple Products Have Become More Expensive? The price hike isn’t limited to a handful of devices. Almost all of Apple’s hardware lineup in India has become more expensive, including iPads, Macs, MacBooks, HomePods, and even the Apple TV lineup. The only major exception, for now, is the iPhone, whose prices remain unchanged. Among the biggest increases, the base iPad now starts at ₹49,990 instead of ₹34,990, while the iPad Air has jumped from ₹64,900 to ₹89,900. The flagship iPad Pro has also seen a significant hike, with prices now starting at ₹1,39,900. Apple’s Mac lineup has also become noticeably more expensive. The Mac mini M4 now starts at ₹94,900 (up from ₹59,900), while the iMac M4 has climbed to ₹1,74,900 from ₹1,34,900. The Mac Studio has also received a substantial increase, with the M4 Max model now costing ₹2,79,900 and the M3 Ultra variant reaching ₹5,99,900. The same trend continues across Apple’s notebook lineup. The MacBook Air M5 now starts at ₹1,49,900 instead of ₹1,19,900, while the base 14-inch MacBook Pro M5 has jumped from ₹1,69,900 to ₹2,39,900. The top-end MacBook Pro M5 Max now costs ₹4,99,900, up from ₹3,99,900. Even Apple’s home products haven’t escaped the price revision. The HomePod now costs ₹44,900, the HomePod mini is priced at ₹15,900, and the Apple TV 4K lineup has received one of the steepest hikes, with the 64GB model increasing from ₹14,900 to ₹25,900. #Apple #Increased #MacBook #iPad #Pricesapple

This price increase has been justified by Apple due to rising costs of producing its products. Specifically, the prices of memory and storage have risen due to strong demand from AI data centers. These components are used in nearly every Mac and iPad.

According to Apple, the cost of memory chips and RAM has increased rapidly over the past several months. The company said it absorbed these higher expenses before deciding to revise product prices. Apple believes the current rise in component costs is unlike anything it has seen before. Although iPhone prices remain unchanged today, industry analysts expect Apple to review them if production costs continue to rise.

Which Apple Products Have Become More Expensive?

iPad air different colors

The price hike isn’t limited to a handful of devices. Almost all of Apple’s hardware lineup in India has become more expensive, including iPads, Macs, MacBooks, HomePods, and even the Apple TV lineup. The only major exception, for now, is the iPhone, whose prices remain unchanged. Among the biggest increases, the base iPad now starts at ₹49,990 instead of ₹34,990, while the iPad Air has jumped from ₹64,900 to ₹89,900. The flagship iPad Pro has also seen a significant hike, with prices now starting at ₹1,39,900.

Apple’s Mac lineup has also become noticeably more expensive. The Mac mini M4 now starts at ₹94,900 (up from ₹59,900), while the iMac M4 has climbed to ₹1,74,900 from ₹1,34,900. The Mac Studio has also received a substantial increase, with the M4 Max model now costing ₹2,79,900 and the M3 Ultra variant reaching ₹5,99,900. The same trend continues across Apple’s notebook lineup. The MacBook Air M5 now starts at ₹1,49,900 instead of ₹1,19,900, while the base 14-inch MacBook Pro M5 has jumped from ₹1,69,900 to ₹2,39,900. The top-end MacBook Pro M5 Max now costs ₹4,99,900, up from ₹3,99,900.

Even Apple’s home products haven’t escaped the price revision. The HomePod now costs ₹44,900, the HomePod mini is priced at ₹15,900, and the Apple TV 4K lineup has received one of the steepest hikes, with the 64GB model increasing from ₹14,900 to ₹25,900.

#Apple #Increased #MacBook #iPad #Pricesapple

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