Oracle weighs wide job cuts amid $50B AI expansion plan
Oracle Corp. is planning to cut thousands of jobs as part of efforts to manage a cash crunch caused by its massive investment in artificial intelligence data centers.
According to people familiar with the matter, the layoffs will affect multiple divisions across the company and could begin as early as this month, News.Az reports, citing Bloomberg.
The sources, who spoke on condition of anonymity because the plans are not yet public, said some of the cuts will target job categories that Oracle expects to rely on less as AI technologies expand.
Led by Chairman Larry Ellison, Oracle has launched a large-scale expansion of data centers designed to power AI workloads for customers including OpenAI. The company, traditionally known for its database software, has been shifting in recent years toward strengthening its cloud computing business with a strong focus on artificial intelligence, aiming to compete more directly with industry leaders Amazon.com Inc. and Microsoft Corp.
Wall Street analysts expect spending on data centers by Oracle’s cloud unit to push the company’s cash flow into negative territory over the coming years, before the investments begin generating returns around 2030, according to data compiled by Bloomberg.
Last month, Oracle announced plans to raise as much as $50 billion this year through a combination of debt and equity sales.
The planned layoffs are expected to be broader than Oracle’s usual rolling job reductions, the sources said. Earlier this week, the company also informed staff internally that it would review many open job listings in its cloud division, effectively slowing or freezing the hiring process, according to people familiar with the decision.
News.Az
By Nijat Babayev
