Oracle is planning thousands of job cuts as the technology company pushes forward with an expensive expansion of its artificial intelligence data centers, raising concerns among investors about rising costs and debt.
The job reductions could affect several divisions across the company and may begin as soon as this month, according to reports citing people familiar with the plans.
Some of the positions targeted for removal are roles the company expects to need less in the future as AI tools become more widely used.
The move comes as Oracle spends heavily to grow its cloud and AI infrastructure. The company is building large data centers to support major customers, including OpenAI, xAI and Meta.
One of the biggest deals driving this expansion is Oracle's reported $300 billion agreement with OpenAI to provide computing power for advanced AI systems, NY Post reported.
Led by chairman and co-founder Larry Ellison, Oracle has been working to transform itself into a stronger competitor in the cloud computing market.
For years, the company was known mainly for its database software. Now it is racing to grow its cloud services to compete with industry leaders like Amazon and Microsoft.
However, the rapid expansion is expensive. Earlier this year, Oracle said it plans to raise between $45 billion and $50 billion to help fund its infrastructure growth.
Oracle planning mass layoffs as AI spending turns cash flow negative: Report https://t.co/slOvyIqnNq
— Financial Express (@FinancialXpress) March 6, 2026
Oracle Spending Surge Raises Investor Concerns
The company has also warned that capital spending will continue to rise. In fiscal 2026 alone, Oracle expects to spend about $15 billion more than its earlier estimate of $35 billion.
Because of the spending surge, some analysts expect the company's cash flow to turn negative in the coming years before the investments begin paying off later in the decade.
Oracle is also slowing its hiring plans while it reviews existing roles. Reports say the company recently began examining many open job listings within its cloud division, effectively delaying or freezing new hires while the restructuring plan takes shape.
The workforce reductions are expected to be broader than Oracle's usual small, rolling layoffs. According to Mint, as of May 2025, the company had about 162,000 employees worldwide.
Investors have started to show concern as costs continue to grow. Oracle's shares rose strongly in earlier years as its AI cloud strategy gained attention, but the stock has recently struggled.
At one point, the share price dropped sharply from its peak reached in September 2025 as worries about spending increased.
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