Investment in big tech AI infrastructure was predicted at $650 billion at the start of 2026. Companies are making restructuring differences according to this massive shift. Oracle laid off nearly 19% of global employees last week, and has already invested $50 billion dollars into infrastructure spending in 2026, $15 billion more than anticipated at the beginning of the year. Two years ago, that spending came in at around $6.9 billion. This isn't just a tech story, it's a customer experience risk unfolding right before our eyes. The shift toward AI is being felt in all sectors, but for CX and contact center employees, it's really hitting home.
Last Tuesday morning, 30,000 employees received an email from an address one employee said they'd never gotten mail from. The email cited "broader organizational change" as the reason that it was their last working day. Within minutes, they were locked out of their company laptops. This cold email, delivered to decades-long Oracle veterans and fresh hires alike, is representative of the company's priorities of efficiency— sacrificing human empathy. The majority of employees laid off were in software engineering, but employees in several different divisions were affected. Some of these were customer-facing and operational roles. This timing is important, because amid an industry-wide AI arms race, data centers are being thrown up rapidly in order to pacify executives and shareholders who are trying not to get left behind.
The Impact on Employees
Employee experience isn't just about one's time spent in a role. The way an employee is treated upon exit, especially during a layoff due to restructuring, is also a crucial part of the experience. Both laid off employees, as well as those who are staying are seeing leadership priorities in real time. For those employees who remain at Oracle, this is causing increasing uncertainty about role longevity and career development. While leaders and shareholders view AI as an efficient method of cutting costs, employees might feel threatened or as though they're losing value the more it's implemented.
Why Does This Matter for CX and Contact Centers?
Many organizations are already investing in automation, chatbots, agent assist, and self-service tools. Oracle has become a spotlit example of what happens when those investments accelerate. As cost centers for many organizations, contact centers could feel vulnerable to this shift, especially because many agent positions are high-turnover. However, employees are the product in these CX roles, and investment in them is investment in the customer. The risks of increased AI implementation in this industry can include decline in service quality and scripted and robotic interactions– the irony is that this can mirror AI. Lower employee security leads to lower empathy, worsening the customer experience further. It's impossible to automate trust while breaking down the people who create it.
The Communication Gap Between CX Leaders and Their Employees
What can CX leaders be doing now?
1. Internally acknowledge headlines
Employees are seeing the same AI news stories leaders are. Open up AI dialogue and directly address fears.
2. Be transparent about how AI will (or won't) impact each role
This doesn't involve a broad vision statement. It involves clear steps for each position. Communicate this now.
3. Pay attention to employee sentiment
Customer sentiment isn't the only sentiment a company should be monitoring. Employee experience directly correlates to the customer's, bridge the gap in communication.
When the employee is the product, make them aware. Investment in your company's team, whether they're in an operational role or an agent role, is crucial now more than ever. Time will tell if Oracle's call was the right one, however, as human intelligence is increasingly taken for granted, CX leaders need to value their employees, calling on appropriate artificial intelligence when used in tandem with human empathy and emotional intelligence.