Oracle Corp plans to eliminate thousands of jobs to handle a cash crunch from a massive AI data center expansion effort.
People familiar with the matter, speaking on condition of anonymity to discuss the still-private plans, said Oracle’s layoffs would affect all divisions of the company and could be implemented as soon as this month. Some of the cuts will be aimed at job categories the company expects will be less needed because of AI, the two people said.
Under the leadership of President Larry Ellison, Oracle is building on a historic buildout of data centers to power AI workloads for customers like OpenAI Inc. The company, long known for its database software, has been making changes over the past few years to beef up its cloud computing unit with a focus on AI, intending to become a viable competitor to market leaders Amazon.com Inc. and Microsoft Corp.
Wall Street projects spending by the cloud unit for data centers to turn Oracle’s cash flow negative in the coming years before the expense begins paying off in 2030, according to data compiled by Bloomberg. Last month, Oracle said it would raise up to $50 billion this year through a combination of debt and equity sales.
Oracle truncation limit
The layoffs planned by Oracle are expected to be broader than the company’s usual rolling job cuts, according to the people. This week, Oracle announced internally that it would review several open job listings in its cloud division, effectively slowing or stopping the hiring process, according to people with knowledge of the move.
Oracle declined to comment. The company had approximately 162,000 employees globally as of the end of May 2025. Plans to cut the workforce are still active and could change, the people said.
The Cost of AI Data Centers – Human Layoffs
Oracle’s early moves as an AI cloud provider were backed by investors, who sent the stock up 61% in 2024 and 20% last year. But as costs mounted, the market came under pressure on the company, with shares falling 54% from their September 2025 high by Wednesday’s close.
The high initial cost of AI has led to cutbacks in the tech industry as companies work to balance their budgets. Microsoft laid off about 15,000 people last year amid rising spending on data centers and AI software development. Last week, Block Inc. announced it would lay off about half its workforce, with co-founder Jack Dorsey citing the efficiency-boosting power of AI.
In September, Oracle revealed in a filing that it was planning its largest-ever restructuring, which would cost up to $1.6 billion in the current fiscal year ending in May, including severance checks for exiting employees.
This was much larger than any other similar plan disclosed by Oracle. The company is scheduled to announce its fiscal third quarter earnings on Tuesday.