Oracle LayOffs: Larry Ellison led Oracle Corp. has a massive layoff drive in its pipeline for the remainder of the fiscal year, as the company plans to let thousands of people go, news agency Bloomberg reported.
The move comes as Oracle grapples with an imminent cash crunch caused by its rapid AI data center expansion efforts. The axing, which may take place this month itself, will impact a lot divisions across the company.
Which departments will get affected?
Job categories which the company thinks it can supplement or replace with AI are expected to be hit hardest, sources told Bloomberg.
They added that this week, Oracle internally announced that it would be reviewing many of the open job listings in its cloud division, with the intention to slow down or freeze the hiring process.
The company is actively striving to power AI workloads for customers such as OpenAI by embarking on a historic build-out of data centers.
The job cuts being planned are expected to be wider-reaching than the company's typical rolling reductions, people in the know told Bloomberg.
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The company's transition to beef up its cloud computing unit with a focus on AI comes as it intends to become a noticeable competitor with market leaders Amazon Inc. and Microsoft Corp, as per Bloomberg report.
However, the efforts are going to bite on the company's cash flow. Wall Street estimates that before it begins to pay off in 2030, the expenditures by the cloud unit for data centers to push Oracle's cash flow negative over the coming years.
Though, Oracle is yet to address the matter officially, it is important to note that the company had about 162,000 employees globally as of the end of May 2025. Plans to narrow the workforce are still active and could change, bloomberg sources said.
On Thursday, Oracle's stock closed 1.59% higher at $156.51. The share price has declined 20.58% in the year-to-date.
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