Oracle (ORCL) is cutting jobs as the cost of competing in artificial intelligence begins to weigh on its business.
The company has started informing employees about layoffs affecting thousands of roles, CNBC reports, citing people familiar with the matter.
Analysts at investment bank TD Cowen previously predicted that Oracle would cut 30,000 jobs while selling some of its assets to fund its AI infrastructure projects. According to the bank, the layoff would free up $8-$10 billion in cash flow.
As of May 2025, Oracle has a workforce of 162,000 employees.
The cuts come as Oracle struggles to keep up with bigger cloud rivals such as Microsoft’s Azure and Amazon’s AWS. To keep pace in building data centers that can run AI workloads, Oracle has been tapping the debt markets as of late.
In September, Oracle sold $18 billion in corporate bonds to fund a data center venture that will be used by OpenAI. And in February, Oracle sold $25 billion in bonds that were “wildly oversubscribed.” At the time, the firm said it would not issue additional bonds for the 2026 calendar year.
ORCL has been in a free fall since hitting its all-time high of $345.72 in September last year. As of Tuesday’s close, the stock is trading at $147.11, down about 58% from its peak.
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