Oracle plans to cut thousands of jobs to cope with cash pressure from its AI data center expansion.

Oracle is planning to cut thousands of jobs across multiple divisions, potentially as early as this month. Some of the layoffs target job categories the company believes are experiencing reduced demand due to the development of AI. As of the end of May 2025, Oracle had approximately 162,000 employees worldwide. The layoff plan is still underway and the specifics may be adjusted. Oracle is currently building data centers on a massive scale to support AI workloads from customers such as OpenAI. Wall Street expects that the data center spending in this cloud business unit will cause Oracle to experience negative cash flow for the next few years, with returns expected to begin around 2030. Oracle stated last month that it will raise up to $50 billion this year through debt and equity offerings. In addition, 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 restructuring plan in recent filings, with related costs reaching up to $1.6 billion this fiscal year. The company is scheduled to release its third-quarter results on Tuesday.