Oracle has laid off thousands of employees globally, with reports suggesting that job cuts could be as high as 30,000, even as the company posted strong revenue growth.
While there is no official confirmation on the total number, in the company’s strategy, especially its growing focus on artificial intelligence and data centres.
The layoffs have impacted multiple regions, including India and Mexico. India appears to be among the worst-hit markets, with reports indicating that nearly 12,000 employees may have been laid off out of a workforce of around 30,000, according to ANI.
One of the key reasons behind the layoffs is Oracle’s aggressive push into artificial intelligence infrastructure. The company has reportedly signed a $156 billion deal to build AI data centres over five years, largely for OpenAI.
This expansion requires massive spending. Oracle is expected to buy around 3 million specialised chips to support these data centres. Its spending on such infrastructure has increased sharply, from about $6.9 billion annually two years ago to nearly $50 billion this year.
To support this scale of investment, the company appears to be cutting costs in other areas, including its workforce.
Oracle is also carrying significant debt, estimated at over $108 billion. This has added pressure on the company to manage its finances carefully.
According to estimates by investment bank TD Cowen, the layoffs could help Oracle free up between $8 billion and $10 billion in cash flow. This money is expected to be redirected towards funding its AI and data centre expansion.
The company had also filed a restructuring plan worth $2.1 billion in March, with nearly $1 billion already spent before the layoffs were carried out.
Another factor behind the layoffs is growing concern among lenders. The cost of insuring Oracle’s debt has risen sharply, reaching levels last seen during the 2009 financial crisis.
Barclays had earlier downgraded Oracle’s debt, warning that the company was close to “junk” status, which indicates a higher risk of default. Some banks have reportedly stopped lending to Oracle for these projects, adding to the financial strain.
There are also concerns around demand for Oracle’s new infrastructure. OpenAI, one of the key customers for these data centre projects, is reportedly exploring newer and faster chips from Nvidia.
This creates a risk that Oracle’s large investments in current-generation infrastructure may not be fully utilised. The company has already spent billions on building facilities, including a major project in Texas.
Rapid changes in technology mean that chips can become outdated quickly, even before data centres are fully operational.
Despite the layoffs, Oracle’s stock rose about 6% on the day the news emerged. The company had reported quarterly revenue of $17.2 billion, its highest in 15 years.
However, the stock has seen a sharp decline over a longer period. It had touched a high of $346 in September 2025 but is now trading around $146.
This decline has also impacted the net worth of Oracle founder Larry Ellison, whose wealth has reportedly dropped significantly over the past few months.
The layoffs are being seen as part of a broader shift within Oracle, as it moves towards capital-intensive AI infrastructure and cloud services.
While the company is investing heavily in future growth areas, the move has come at the cost of job cuts across its existing business.
With high debt levels, rising costs, and uncertainty around demand, Oracle appears to be restructuring its operations to manage risks and fund its long-term plans.