Oracle Plans Thousands of Job Cuts as AI Data Centre Spending Rises: Report

Oracle is preparing to cut thousands of jobs across several divisions amid financial pressure tied to its AI data centre build-out, according to a report by Bloomberg.

The layoffs could begin as early as this month and are expected to affect multiple business units. Some of the reductions will target roles the company believes will become less necessary as AI tools take on more operational tasks.

The restructuring comes as Oracle significantly increases spending to expand its AI infrastructure. The company, led by chairman Larry Ellison, is investing heavily in new data centres to support AI workloads for clients, including OpenAI.

Oracle, historically known for database software, has been expanding its cloud computing operations in recent years with a stronger focus on AI services. Through this strategy, the company is seeking to compete more directly with cloud leaders Amazon and Microsoft.

To support the expansion, Oracle said last month that it could raise as much as $50 billion in 2026 through a mix of debt and equity offerings.

The company is also reviewing open roles in its cloud division, effectively slowing hiring as it reassesses staffing needs alongside its AI investments. Oracle employed about 162,000 people globally as of May 2025.

Oracle has committed to building large-scale data centres to support OpenAI as part of the Stargate AI infrastructure project, a five-year initiative valued at about $300 billion and expected to deliver roughly 4.5 gigawatts of computing capacity.

Analysts at TD Cowen estimate that the OpenAI portion of the project alone could require about $156 billion in capital expenditure, including infrastructure to support roughly three million GPUs along with associated data centre systems.

The planned layoffs come as tech companies adjust their workforces while increasing spending on artificial intelligence. Microsoft reduced about 15,000 jobs last year as it stepped up investment in AI and data centres, while Block, led by co-founder Jack Dorsey, recently announced plans to cut nearly half of its staff.