Major Companies Restructure Amid AI Surge

In 2025, a significant wave of layoffs swept across various industries, with major companies like Oracle, Nike, Kroger, and Scale AI reducing their workforces. These decisions are primarily driven by advancements in artificial intelligence (AI), automation, and strategic business realignments.

Oracle has laid off over 150 employees in its cloud division, despite reporting record revenues and securing substantial AI deals. The company attributes these job cuts to rising infrastructure costs and a strategic shift towards more efficient business operations. The layoffs primarily affect roles in cloud infrastructure and support services, reflecting Oracle's focus on enhancing automation and scalability within its cloud offerings.

Nike has announced layoffs in its technology division as part of a broader restructuring plan aimed at streamlining business operations and refocusing on core priorities. The affected employees are primarily from corporate functions and strategic enterprise divisions, responsible for managing business processes and digital infrastructure. Some of these responsibilities are being outsourced to third-party companies, indicating Nike's shift towards more agile and cost-effective operational models.

Kroger, a leading grocery retailer, continues to scale its use of artificial intelligence to improve operational efficiency, particularly in inventory management. AI-driven systems now provide the company with better visibility of in-store inventory, including expiration tracking and product-level insights that inform smarter ordering decisions. This technological advancement has led to significant reductions in shrink across both fresh and center-store categories, allowing Kroger to streamline its workforce and enhance profitability.

Scale AI, a company specializing in AI data labeling and training, has also reduced its workforce as part of a strategic realignment. The company attributes these layoffs to the increasing automation of its data processing workflows, which has reduced the need for manual labor. By leveraging AI tools, Scale AI aims to enhance the efficiency and scalability of its operations, leading to a leaner organizational structure.

These layoffs are part of a broader trend across industries, where companies are embracing AI and automation to streamline business operations and reduce costs. The World Economic Forum predicts that 41% of businesses may reduce staff due to AI integration over the next five years.

Yet, while some industries are shrinking due to AI integration, others are thriving. Companies specializing in AI development and cloud computing are experiencing unprecedented growth. Microsoft, Google, and Amazon Web Services continue to expand AI capabilities and cloud offerings, driving demand for AI engineers, data scientists, and machine learning specialists.

Startups in AI-driven analytics, robotics, and automation platforms are also seeing rapid investment, reflecting the broader adoption of AI across sectors. The healthcare industry is particularly buoyant, with AI being used for diagnostics, drug discovery, and operational optimization. Financial services are similarly leveraging AI for fraud detection, risk management, and algorithmic trading, creating new roles in tech-driven finance.

Even traditional industries are finding growth opportunities through AI. Manufacturing companies are implementing AI-powered robotics and predictive maintenance systems to improve production efficiency.

The current landscape underscores the dual nature of AI’s impact on business operations: while some sectors face reductions and restructuring, others thrive by embracing AI’s potential to drive growth, innovation, and efficiency. Companies and workers who adapt to these changes are positioned to benefit from the technological transformation shaping the modern economy.