Oracle Corp. is preparing to lay off thousands of workers across its business units to ease a cash shortage caused by its aggressive expansion of AI-powered data centres, a Bloomberg report said, citing people familiar with the plans.
The job cuts could start as early as this month and will go beyond the company’s usual small-scale reductions, sources told Bloomberg News. Some positions targeted for elimination are ones that the company believes artificial intelligence will make redundant in the future.
Why Oracle Is Spending Billions on AI Data Centers
The report suggests that Oracle Chairman Larry Ellison is leading a major push to build new data centers that can handle demanding AI tasks for big customers, including OpenAI.
The company, famous for its database software, has spent recent years growing its cloud computing business with a strong focus on AI. Its goal is to challenge top players like Amazon.com Inc. and Microsoft Corp.
Wall Street analysts expect Oracle’s heavy spending on these data centers to keep its cash flow negative for several years. The investments are not forecast to start delivering strong returns until around 2030, Bloomberg data shows. Last month, Oracle announced plans to raise up to $50 billion this year by selling debt and shares.
Hiring Freeze and Wider Cuts Signal Deeper Changes
This week, Oracle told staff internally that it is reviewing many open job postings in its cloud division, which effectively slows or stops new hiring there, people with knowledge of the move told Bloomberg.
The planned reductions are expected to affect more parts of the company than typical ongoing cuts, the sources added. Oracle has not yet commented publicly on the layoffs.
As of May 2025, the company had around 162,000 employees worldwide. People familiar with the discussions told Bloomberg that plans for workforce reductions are still being developed and could change.
Investors had earlier welcomed Oracle’s push into AI-powered cloud services. The company’s shares rose sharply, gaining about 61% in 2024 and another 20% the following year. But as spending on AI infrastructure increased, market sentiment began to weaken. Since reaching a peak in September 2025, the stock has dropped about 54% by the close of trading on Wednesday.
After reports about the possible job cuts surfaced, Oracle’s stock erased earlier gains on Thursday. The share price fell as much as 1.5% to around $150.12 during trading.
Rising AI Costs Putting Pressure On Tech Companies
Large upfront investments in artificial intelligence have forced several technology firms to rethink spending and staffing levels. Companies across the sector are making cuts as they try to manage rising costs linked to AI development and data centres.
For example, Microsoft reduced its workforce by around 15,000 employees last year while increasing investment in data centres and AI software.
More recently, Block Inc. announced plans to lay off nearly half of its staff. Co-founder Jack Dorsey said the decision was partly driven by the efficiency gains that artificial intelligence can bring to the company’s operations.