Oracle to Cut Thousands of Jobs Amid Artificial Intelligence Expansion Efforts

Oracle Announces Fresh Round of Layoffs, Affecting Thousands of Employees Globally

Oracle has begun informing employees about a new round of layoffs, with the cuts expected to span its global operations and potentially impact thousands of jobs. According to people familiar with the matter, the layoffs are part of a broader organizational change aimed at aligning the company's workforce with its current business needs.

The notification email, as reported by Business Insider, informs employees that their last working day is immediate, citing the decision to eliminate their role as part of a broader restructuring effort. Employees will be eligible to receive a severance package, subject to the terms and conditions of the severance plan, and will receive an email with details on their severance and termination date.

To receive important follow-up information, including FAQs and separation documents, employees are required to submit a personal email address. This email address will only be used for correspondence regarding separation-related information and severance agreements.

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Estimates from TD Cowen analysts suggest that the layoffs could affect between 20,000 and 30,000 positions, out of a total workforce of around 162,000 employees as of May 2025.

The layoffs are aimed at roles expected to shrink due to advancements in artificial intelligence, while Oracle has also slowed or frozen hiring in parts of its cloud division after reviewing open roles. This marks the company's largest restructuring effort to date, following smaller layoffs of around 3,000 employees in September 2025 across India, the US, Canada, and the Philippines.

Shares of Oracle have declined 27 per cent so far this year as investors weigh competition from generative AI and the impact of rising infrastructure spending on cash flow. Despite this, the company has been increasing capital expenditure to build data centre infrastructure capable of handling AI workloads, while continuing to focus on its core database business.

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In September, Oracle reported a significant surge in its remaining performance obligations, rising 359 per cent to $455 billion after a deal with OpenAI worth over $300 billion. Weeks later, the company named Mike Sicilia and Clay Magouyrk to take over from CEO Safra Catz, following a leadership shake-up.