Oracle Inc. shares were in the spotlight on Thursday as investors weighed the company's latest cost-cutting move.

What To Know: The tech giant confirmed it is cutting roughly 10% of its Oracle Cloud Infrastructure staff in India, a move management says is part of a broader strategy to lean on automation and artificial intelligence to drive growth.

The layoffs come as Oracle positions itself to compete more aggressively with Amazon, Microsoft and Google in the cloud and AI space. The strategy draws direct comparisons to Meta's 2023 "Year of Efficiency," when the Facebook parent company slashed tens of thousands of jobs to reallocate capital toward AI, ultimately fueling a sharp rally in its stock.

Analysts note Oracle is hoping for a similar outcome by trimming payroll expenses and boosting margins through Terraform-driven automation and expanded AI infrastructure.

Still, questions remain about whether the cuts will strengthen Oracle or slow its ability to innovate in an already hyper-competitive market. Unlike Meta, which benefited from massive scale, Oracle's cloud business is still in a critical growth phase.

If the company can deliver margin gains while accelerating AI adoption, the layoffs may be seen as a smart efficiency play. But if execution falters, investors could interpret the cuts as a sign of overextension. For now, the stock reflects uncertainty, with investors cautious about whether efficiency will translate into sustainable growth.

ORCL Price Action: Oracle shares closed Thursday down 0.83% at $233.16, according to Benzinga pro.

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