Oracle is preparing for a significant workforce reduction, which will affect several divisions within the company. The decision comes at a time when Oracle is facing financial difficulties due to its ambitious expansion of AI data centres.
Sources familiar with the situation, but wishing to remain anonymous due to the confidentiality of the plans, indicate that this downsizing could start as early as this month. The job losses are expected to be more extensive than the usual staff adjustments at Oracle.
The company is increasingly focusing on AI and cloud computing, aiming to compete with industry giants Amazon and Microsoft. However, that strategic shift requires significant upfront investment in data centres, which is expected to lead to negative cash flow in the coming years. Oracle’s cloud division is currently being evaluated and there is talk of a delay or freeze on hiring new staff.
Although Oracle initially received positive responses from the market to its AI cloud initiatives, the significant costs involved have tempered investor sentiment since then. Oracle’s share price has seen a notable decline from its peak in September 2025.
Oracle’s situation reflects a broader trend in the technology sector, where companies are taking cost-cutting measures, including layoffs, to manage the high costs associated with AI development and infrastructure. In September, Oracle announced a major restructuring plan with an estimated cost of $1.6 billion, including severance payments for departing employees.
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