Oracle is reportedly preparing to cut thousands of jobs as the tech giant pours billions of dollars into building the infrastructure needed to support artificial intelligence.
According to a Bloomberg report, the tech leader is considering layoffs across multiple divisions as it grapples with the financial strain caused by its large-scale AI expansion. The report states that “the job reductions will affect divisions across the company and may be implemented as soon as this month,” citing people familiar with the matter.
Sources told Bloomberg that some of the cuts are expected to target roles that Oracle believes may become less necessary as artificial intelligence tools take on more tasks. Planning for the layoffs is still underway and could change, the report added.
Massive AI infrastructure push
Oracle, chaired by Larry Ellison, has been aggressively expanding its cloud infrastructure to compete with major cloud providers like Amazon and Microsoft.
The company is investing heavily in data centers to support AI workloads for clients, including OpenAI. This effort marks a significant shift for Oracle, which built its reputation on enterprise database software but has increasingly focused on cloud computing and AI services in recent years.
However, the high upfront costs of building and operating AI data centers have begun to weigh on the company’s finances. Bloomberg reported that Wall Street expects Oracle’s cloud infrastructure spending to push the company’s cash flow into negative territory for several years before those investments begin generating returns later in the decade.
To support the expansion, Oracle said last month it could raise as much as $50 billion through debt and equity financing this year.
As part of the broader cost-control effort, Oracle has also begun reviewing open job listings in its cloud unit. According to Bloomberg, the company recently informed employees that many open roles in the cloud division would be reviewed, effectively slowing or freezing new hiring. These measures suggest Oracle is attempting to balance its rapid AI infrastructure buildout with tighter spending elsewhere in the business.
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Stock pressure and investor concerns
Oracle’s aggressive AI investment strategy has sparked mixed reactions from investors.
Shares of the company surged in 2024 and into 2025 as demand for AI infrastructure grew. But as the cost of building new data centers increased, market sentiment cooled. Bloomberg data shows Oracle’s stock has fallen 54% from its September 2025 high.
Following the latest report about possible layoffs, the stock slipped as much as 1.5% to $150.12, according to Bloomberg.
Investors have raised concerns about the scale of spending required to support major AI customers and whether the company can maintain healthy cash flow during the expansion phase.
Oracle’s largest restructuring yet
The company is scheduled to report its fiscal third-quarter earnings on Tuesday, which could provide more clarity on both its financial situation and its job-cut plans.
Oracle first signaled something big was coming back in September, when it disclosed in a filing that it was planning its largest-ever restructuring, which will cost as much as $1.6 billion in the current fiscal year ending in May, including severance for exiting employees. That was significantly larger than any other similar plan Oracle has disclosed.
As of May 2025, Oracle employed roughly 162,000 people worldwide, according to company filings.
Also read: OpenAI says Stargate data centers won’t raise local power bills, arguing the campuses will fund their own energy needs.
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