Oracle is reportedly planning to cut thousands of jobs across various departments, potentially starting this month. According to Odaily, the layoffs target positions deemed less necessary due to advancements in artificial intelligence. As of the end of May 2025, Oracle's global workforce stands at approximately 162,000 employees, with the layoff plans still under development and subject to change.
The company is currently expanding its data centers to support AI workloads for clients like OpenAI. Wall Street analysts predict that the spending on data centers by Oracle's cloud business will result in negative cash flow for several years, with returns expected around 2030. Last month, Oracle announced plans to raise up to $50 billion through debt and equity issuance this year.
Additionally, Oracle internally announced this week a review of numerous open positions in its cloud division, effectively slowing or freezing the hiring process. Oracle's stock has fallen 54% from its peak in September 2025 to the close of trading on Wednesday. Previously, Oracle disclosed its largest restructuring plan in a filing, with related costs for the fiscal year potentially reaching $1.6 billion. The company is scheduled to release its third-quarter earnings on Tuesday.