Oracle Announces Plan for Up to 30,000 Job Cuts by June 15 Amid Cloud and AI Expansion

Oracle Embarks on Largest Workforce Reduction, Citing AI Investment Priorities

Oracle Corp has entered the final phase of its largest workforce reduction, with thousands of employees set to depart between June 1 and June 15. This move is expected to result in the departure of nearly 30,000 employees, which represents approximately 18% of the company's global workforce.

Despite posting robust earnings and accelerating growth in cloud and artificial intelligence (AI), Oracle is undertaking this significant restructuring. During the third-quarter fiscal 2026, the company reported stronger-than-expected earnings, driven by surging demand for cloud infrastructure and AI-related services. Oracle's revenue rose 22% year-on-year (YoY) to $17.2 billion, while cloud revenue jumped 44% to $8.9 billion. 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 Oracle, where management is prioritizing AI infrastructure investments over labour-intensive operations. This move is part of the company's efforts to redirect resources toward high-growth AI businesses as demand for computing capacity surges.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

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 AI infrastructure venture backed by OpenAI and SoftBank. 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.

The transition has been difficult for affected workers, with Oracle's severance package drawing criticism. The package includes tenure-based payouts capped at 26 weeks, but also forfeits unvested stock awards. A group of laid-off workers reportedly petitioned for improved compensation terms, but the company declined to revise the package.