Oracle Corp has moved into the final phase of what is expected to be its largest workforce reduction, with thousands of employees reaching official separation dates between June 1 and June 15. The company is expected to complete the departure of nearly 30,000 employees, or about 18% of its global workforce.
come despite the software giant posting robust earnings and accelerating growth in cloud and artificial intelligence (AI).
During the third-quarter fiscal 2026, Oracle reported stronger-than-expected earnings, driven by surging demand for cloud infrastructure and AI-related services.
The company’s revenue rose 22% year-on-year (YoY) to $17.2 billion, while cloud revenue jumped 44% to $8.9 billion, as per a Tech Times report.
The company’s AI business expanded even faster, with Oracle Cloud Infrastructure’s AI segment reporting 243% growth and multicloud database revenue soaring 531%. GAAP net income stood at $3.7 billion for the quarter.
The contrast between strong financial performance and deep workforce cuts highlights a broader shift underway at , where management is prioritising AI infrastructure investments over labour-intensive operations.
Reason behind Oracle Layoffs
Oracle has committed nearly $50 billion in capital expenditure for fiscal 2026, largely directed toward expanding AI data centres and cloud infrastructure. The company is also a key participant in Stargate, the large-scale venture backed by OpenAI and SoftBank.
Executives have indicated that the layoffs are part of an effort to redirect resources toward high-growth AI businesses as demand for computing capacity surges, Tech Times reported.
Oracle’s remaining performance obligations — a measure of contracted future revenue — climbed 325% year-on-year to $553 billion, reflecting strong long-term demand for AI infrastructure.
For affected workers, however, the transition has been difficult. Oracle’s severance package, which includes tenure-based payouts capped at 26 weeks, has drawn criticism from some employees, particularly over the forfeiture of unvested stock awards. A group of laid-off workers reportedly petitioned for improved compensation terms, but the company declined to revise the package.