Oracle Plans to Cut Thousands of Jobs to Address Cash Pressure from AI Data Center Expansion

Odaily News Oracle is planning to cut thousands of positions across multiple departments, with the earliest possible execution this month. Some of the layoffs target job categories the company believes have reduced demand due to AI development. As of the end of May 2025, Oracle had approximately 162,000 employees globally. The layoff planning is still underway, and the specific plan may be adjusted.

Oracle is currently undertaking large-scale data center construction to support AI workloads for clients like OpenAI. Wall Street expects that the data center spending by this cloud business unit will lead to negative cash flow for Oracle in the coming years, with returns expected to begin around 2030. Oracle stated last month that it plans to raise up to $50 billion this year through debt and equity issuance.

Furthermore, Oracle internally announced this week that it will review a large number of open positions in its cloud division, effectively slowing down or freezing the hiring process. Oracle's stock price has fallen 54% from its September 2025 high to Wednesday's close. Oracle previously disclosed its largest-ever restructuring plan in filings, with related costs for this fiscal year reaching up to $1.6 billion. The company is scheduled to announce its third fiscal quarter results on Tuesday.