Oracle Corp. is planning to lay off thousands of employees as the company struggles with a cash crunch from its massive AI data centre expansion effort.
The layoffs, which may be implemented as soon as this month, will affect divisions across the company and are aimed at job categories that the company expects it will need less of due to AI.
Oracle's historic build-out of data centres to power AI workloads for customers such as OpenAI Inc. has led to a significant increase in expenditures, pushing the company's cash flow negative over the coming years.
The company had about 162,000 employees globally as of the end of May 2025 and is planning its largest-ever restructuring, which will cost as much as $1.6 billion in the current fiscal year.
Oracle's AI ambitions have drawn favour from investors in the past, but the high up-front costs have fueled cuts across the tech industry as companies work to balance their budgets.
