Oracle has begun another round of layoffs as the technology company cuts costs while committing billions of dollars to expanding its artificial intelligence infrastructure.
Several Oracle employees received layoff notices on Monday, with the latest cuts coming about a month after reports that the company was preparing another round of job reductions to reduce payroll costs.
The number of employees affected by the latest cuts has not been disclosed. Some workers have reported losing their jobs on LinkedIn, Reddit and Blind, an anonymous workplace platform.
Employees affected by the cuts were reportedly offered four weeks of base salary, plus an additional week for each year they had worked at the company.
Oracle attributed the latest reductions to a broader organisational restructuring.
The layoffs come as the company takes on significant debt to finance an aggressive expansion of its data centre infrastructure, driven largely by growing demand for AI computing capacity.
Oracle’s capital expenditure reached $28.5 billion in its latest quarter, up sharply from $8.5 billion a year earlier. The company has forecast capital spending of between $90 billion and $95 billion for its 2027 fiscal year.
The spending has helped Oracle expand its cloud infrastructure business and secure partnerships with major technology companies, including Amazon, Alphabet and Microsoft.
However, the scale of the investment has raised concerns among investors about Oracle’s cash flow and whether demand for AI infrastructure will generate sufficient returns.
Oracle had already laid off about 21,000 employees, representing roughly 13 per cent of its workforce, earlier this year, according to a recent company filing.
The company had about 141,000 employees before the latest round of cuts.
The latest restructuring also comes amid developments involving Executive Chairman Larry Ellison. A recent filing showed that Ellison had established a trading plan that would allow him to sell up to 50 million Oracle shares before October 24.
Oracle’s latest job cuts highlight the growing pressure on technology companies to balance the enormous cost of building AI infrastructure with the expectation of strong returns from the rapidly expanding market.
