Oracle will lay off additional thousands of employees to fund AI data centers

What is happening with Oracle
Last year, Oracle’s involvement in building AI infrastructure for the United States led its founder Larry Ellison to temporarily become the world’s richest person. However, rising costs of expanding the AI cloud are already taking a toll on regular employees: the company plans workforce reductions.

Planned layoffs
* New round of layoffs – Bloomberg reports that Oracle will announce a sharp reduction in staff this month.

* Who will be affected? Positions that will be least in demand during the AI era are targeted first.

* Size of losses – possible cuts from several thousand to 20–30 thousand employees.

Why it is happening
1. Financial deficit

* Oracle expects a negative cash flow through 2030 due to massive investments in the AI sector.

2. Capital expenditures – the company plans to raise up to $50 million this year both by selling assets and through borrowing.

3. Cost savings – layoffs help save money in the medium term.

Current data
Metric Value Number of employees (end of May 2025) 162,000 Restructuring expense level up to $1.6 million this year (last year – $610 million) Stock price (since September last year) drop of 54 %

Financial context
* The deal with OpenAI is worth up to $300 million and creates a huge burden.

* Workforce reductions could free up to $10 million per year for Oracle.

Other details from the quarterly results will be released next week, and the financial report will conclude at the end of May this year.