Oracle plans thousands of job cuts amid soaring AI infrastructure costs, report

Company has also begun reviewing unfilled roles in its cloud division as part of wider efforts to curb spending

Oracle is planning significant job cuts and reviewing hiring as it invests heavily in AI infrastructure, raising concerns about the company's finances and future growth.

US technology giant Oracle Corporation is reportedly planning to lay off thousands of employees as it pours billions of dollars into expanding the infrastructure required to power AI.

People familiar with the matter told Bloomberg that the company is considering layoffs across several divisions, which could begin as soon as this month. Some of the reductions are expected to target roles that may become less necessary as AI systems increasingly automate routine tasks. However, the plans are still under discussion and could change.

The potential layoffs come as Oracle invests heavily in new datacentres designed to power advanced AI workloads.

Under the leadership of chairman Larry Ellison, the company is undertaking one of the largest infrastructure expansions in its history. The facilities are intended to support growing demand for AI services, including contracts linked to companies such as OpenAI.

Oracle, long known for its database software, has been shifting its focus in recent years towards cloud computing and AI services through its Oracle Cloud Infrastructure platform. The strategy aims to position the company as a stronger competitor to industry leaders such as Amazon and Microsoft.

But building and running large AI datacentres requires significant upfront investment, and analysts warn the spending could weigh on the company's finances for several years.

Wall Street analysts expect Oracle's heavy spending on cloud infrastructure to drive the company's cash flow into negative territory before those investments start delivering returns later in the decade. To fund the expansion, Oracle said in February that it could raise up to $50bn this year through a mix of debt and equity financing.

In a statement, the company said the funding plan reflects its commitment to maintaining "investment-grade ratings, prudent capital allocation and balance-sheet strength" while expanding its cloud infrastructure business.

The announcement unsettled some investors, sending Oracle's shares lower amid concerns about rising debt and the uncertain timeline for AI profits.

As part of broader cost-control efforts, Oracle has also begun reviewing open job listings within its cloud division. Employees were recently informed that many vacant roles would be reassessed, effectively slowing new hiring.

These measures suggest the company is attempting to balance its aggressive AI expansion with tighter spending across the wider business.

Oracle had already hinted at major changes earlier.

In September, it disclosed plans for its largest restructuring programme, expected to cost up to $1.6bn during the fiscal year ending in May, including severance payments for departing staff.

A research note published by TD Cowen in January suggested that Oracle was considering major cost-cutting measures, including potential layoffs of 20,000 to 30,000 employees.

Company filings show Oracle employed about 162,000 people worldwide as of May 2025.

Oracle is not alone in making job cuts to enable more spending on AI infrastructure. Microsoft reduced its workforce by around 15,000 employees last year amid rising spending on AI software and datacentres.

Meanwhile, payments company Block Inc., co-founded by Jack Dorsey, recently announced plans to cut nearly half its staff, citing productivity gains from AI technologies.

Oracle is due to report its fiscal third-quarter earnings on Tuesday, when investors will be watching closely for details on both its finances and any confirmed job reduction plans.