Enterprise software company Oracle is planning thousands of job cuts as the company faces financial pressure from a massive AI centre expansion effort. The company has long been a small contender in the cloud market, but over the past year, Oracle has emerged as a major player in the business of renting computing power, which it owes to its $300 billion deal with OpenAI, Bloomberg News reported on Thursday.
Investors have grown worried about how the company would fund the data centre expansion needed to serve OpenAI and other customers, including Elon Musk’s xAI and Meta. In December 2025, the company expected capital expenditures for fiscal 2026 to be $15 billion higher than the $35 billion figure the company estimated during its first-quarter earnings call.
The layoffs are expected to impact divisions across Oracle and may be implemented as soon as this month, the report said, citing people familiar with the matter. Part of the cuts will be aimed at job categories that the company expects will shrink due to AI.
Oracle had about 162,000 full-time employees as of May 31, 2025, according to its annual filing with the US Securities and Exchange Commission. The Software giant, chaired by billionaire Larry Ellison, reportedly outlined plans in February to raise $45 billion to $50 billion this year to expand its cloud infrastructure, fueling investor concerns about its rising debt load.
This week, Oracle announced internally that it would be reviewing many of the open job listings in its cloud division, effectively slowing down or freezing the hiring process, the report added.
The Company is set to report third-quarter results on Tuesday. Oracle’s shares fell more than 15 per cent last year, with its December results showing about $10 billion in cash burn for the first half of the fiscal year.
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Oracle Layoffs: Tech Giant Plans Thousands Of Job Cuts Amid Rising Data Centre Costs
