Oracle is reportedly planning thousands of job cuts as the company faces rising costs linked to its massive expansion of artificial-intelligence data centres. The layoffs could affect multiple divisions and may begin as early as this month, according to reports citing people familiar with the plans.
The workforce reductions are part of Oracle’s strategy to manage a cash crunch caused by heavy spending on AI infrastructure, as the company ramps up cloud and data-centre capacity to support growing demand for AI computing.
The software giant, led by chairman Larry Ellison, has been aggressively expanding its cloud services to compete with major players like Amazon and Microsoft. A major driver behind the expansion is Oracle’s large-scale partnership to provide computing infrastructure for OpenAI.
Analysts say the company’s capital spending on data centres could push its free cash flow into negative territory for several years, as billions of dollars are invested in chips, servers and cloud infrastructure to support AI workloads.
Oracle had about 162,000 employees worldwide as of 2025, and the planned cuts are expected to be broader than its typical rolling layoffs. The company is also reportedly reviewing open job listings in its cloud division and slowing hiring as part of the restructuring effort.
The move reflects a broader trend across the technology industry, where companies are balancing rapid investments in artificial intelligence with cost-cutting measures to maintain financial stability.
