Oracle Corporation is preparing to implement a mass layoff that could affect thousands of employees across several divisions, according to a Bloomberg report. The job cuts may begin as soon as this month.
The move is reportedly a part of efforts to manage a cash crunch linked to Oracle’s massive spending on AI data centres, a key area of investment as technology firms race to build infrastructure for AI services.
Apart from the layoffs, Oracle has also internally informed staff this week that it would be reassessing many of the open job listings in its cloud division, effectively slowing down or temporarily halting new hiring.
Which departments are at risk?
It is still unclear which specific departments will be affected by the mass layoffs at Oracle. More details on the nature of the job cuts are awaited.
However, two people aware of the matter told the news agency that some of the job cuts will be aimed at job categories that the company expects to become redundant due to artificial intelligence.
The company had about 162,000 employees globally as of the end of May 2025. Planning for the workforce reductions is still active and could change, the people told Bloomberg.
How is Sam Altman’s OpenAI linked to this?
Oracle, led by Chairman Larry Ellison, is embarking on a historic build-out of data centres aimed at powering AI workloads for major customers such as Sam Altman-led OpenAI, the news report said.
The software company is long known for its database products, but it has been shifting its strategy in recent years to bulk up its cloud computing business with a strong focus on AI. Through these efforts, Oracle intends to position itself as a viable competitor to market leaders such as Amazon and Microsoft.
AI-related job cuts in tech industry
The high up-front costs involved in expanding AI infrastructure have prompted companies to cut expenses elsewhere, with several tech firms implementing cost-cutting measures as they work to balance their budgets while investing heavily in AI capabilities.
In January alone, Amazon reduced 16,000 corporate roles, its second mass layoff since October. Nike slashed 775 distribution centre jobs in Tennessee and Mississippi, and Home Depot eliminated 800 positions, mostly in its technology organisation, according to Forbes.
In September last year, Oracle disclosed in an exchange filing that it was planning its largest-ever restructuring, which would cost as much as $1.6 billion in the current fiscal year ending in May, including severance payouts for exiting employees. The software company is scheduled to announce its fiscal third-quarter earnings on 10 March.
