Oracle cuts thousands of jobs to fund AI expansion

Oracle has begun laying off thousands of employees globally this week as the US software group restructures to fund heavy investment in artificial intelligence infrastructure.

Multiple outlets reported that the company started informing staff on Tuesday that their roles were being eliminated, with cuts affecting workers across multiple countries and business units. Oracle has not confirmed the total number, but sources told the broadcaster the reductions run into the thousands.

The BBC reported that internal estimates suggest around 10,000 roles may already have been cut, based on a decline in active users on the company’s internal systems. One employee cited by the BBC said the reduction appeared “significant”, while internal messages indicated the layoffs were not linked to individual performance.

Business Insider reported that employees were told their jobs had been cut “as part of a broader organisational change”, with immediate loss of access to company systems. Several workers said they received early morning emails informing them that their employment had ended and that they would receive one month of severance pay.

Analysts at TD Cowen estimate the total number of job cuts could reach between 20,000 and 30,000, representing roughly 18 per cent of Oracle’s 162,000-strong workforce. The bank said the reductions could free up between $8-10 billion in cash flow to support the company’s data centre expansion.

Oracle’s shares have fallen about 25 per cent this year as investors scrutinise its debt-funded spending on AI infrastructure. The company has announced plans to raise up to $50 billion in 2026 to finance data centre construction, reflecting growing demand from customers building AI systems.

Executives have defended the strategy. Clay Magouyrk, an Oracle executive, said on a recent earnings call that “demand for AI infrastructure, both GPU and CPU, continues to exceed supply,” pointing to contracted future revenues exceeding $500bn.

The restructuring includes specific regional cuts, such as 491 roles in Washington state, and could cost up to $2.1 billion, largely tied to severance payments. The company has declined to comment publicly on the broader scale of the layoffs.

Former employees have begun speaking out online. Kendall Levin, a former Oracle staff member, wrote on LinkedIn that her role had been “eliminated as part of the company’s mass reduction in force”, adding she remained “a genuine believer” in its direction.

Oracle’s cuts form part of a wider wave of job reductions across the technology sector, with more than 70 companies eliminating over 40,000 roles so far in 2026 as spending shifts towards AI.

Business Insider reported that Amazon is planning to cut around 16,000 roles globally this year, while Meta has laid off several hundred employees as it redirects investment towards artificial intelligence and infrastructure. Game publisher Epic Games has also reduced its workforce by more than 1,000 employees, citing lower engagement with its flagship Fortnite title and broader cost pressures rather than AI adoption.