Oracle cutting thousands in latest layoff round as company continues to ramp AI spending

Oracle Corporation has begun informing its workforce about an impending round of layoffs, impacting thousands of employees, according to sources familiar with the situation who wished to remain anonymous due to the sensitive nature of the matter. The software giant, which employed around 162,000 individuals as of May 2025, is facing scrutiny from investors as its shares have dropped by 27% this year. The decline in stock prices is largely attributed to concerns over competitive threats posed by generative artificial intelligence technologies and how the company’s infrastructure investments may influence its cash flow. While Oracle has remained committed to enhancing its flagship database services for corporate data management, it has significantly increased capital expenditures to develop data center infrastructure capable of supporting AI workloads. In a noteworthy development, Oracle recently reported a staggering 359% increase in its remaining performance obligations, a key indicator of future contracted revenue, which surged to $455 billion. This growth follows a substantial agreement with OpenAI valued at over $300 billion. Additionally, in a leadership shakeup, Oracle appointed Mike Sicilia and Clay Magouyrk to take over for the outgoing CEO, Safra Catz, just weeks after these announcements were made. The news of the layoffs was first reported by Business Insider earlier this week. As Oracle navigates these changes, the emphasis on AI investments appears to be a central focus of its strategy moving forward.