Oracle plans another wave of layoffs as AI spending drives debt surge

Sources familiar with an internal memo indicate Oracle is outlining a new set of layoffs intended to reduce payroll before the start of the second quarter. The plan could see double-digit percentage cuts in certain groups, and managers have been instructed to submit names of affected workers. This follows a 13% reduction—21,000 jobs—in the workforce for the fiscal year that concluded on May 31.

Oracle has been financing a multibillion-dollar push into AI infrastructure, borrowing tens of billions and spending $55.7 billion on new data centers, which exceeded its cash inflows by $23.7 billion. While revenue rose 17% and cloud infrastructure sales jumped 77%, the company’s stock is down nearly 26% this year, prompting cost-saving measures. Oracle declined to comment on the prospective layoffs. The situation highlights the tension between aggressive AI investment and Wall Street’s demand for profitability.