Oracle cuts thousands of jobs due to AI investment pressure

Oracle is preparing to cut thousands of jobs, reports Golem. The layoffs could begin as early as this month, according to people familiar with the plans. The measures go well beyond previous job cuts. Some of the positions affected fall into job categories that Oracle considers expendable in the future due to the use of AI tools.

AI investments push cash flow into the red

Behind the job cuts is massive investment pressure. CEO Larry Ellison is pushing ahead with the expansion of data centers for AI tasks, including for customers such as OpenAI. Originally known for database software, the company has been positioning itself for years as a cloud competitor to Amazon and Microsoft.

Wall Street analysts expect the investments to push the company’s cash flow into negative territory for several years. According to Bloomberg, a recovery could not come until around 2030. Last February, Oracle announced that it would raise up to $50 billion this year through debt and stock sales.

Oracle could halt hiring in cloud division

In parallel with the job cuts, Oracle is reviewing many open positions in its cloud division internally. This effectively means a hiring freeze in this area. The company employs around 162,000 people worldwide. There has been no official statement.

The company’s early positioning as an AI cloud provider initially impressed investors: its share price rose by 61 percent in 2024 and by a further 20 percent in 2025. However, concerns about costs have since caught up with the stock. Since its high in September 2025, it has fallen by 54 percent. Last Thursday, it fell another 1.5 percent to $150.12.

Oracle is not alone in this dilemma. Microsoft cut around 15,000 jobs last year, while at the same time investing heavily in data centers and AI. Block co-founder Jack Dorsey also cited AI-driven efficiency gains as the reason for cutting nearly half of the workforce last week. In September 2025, Oracle announced its largest restructuring measure to date, with costs of up to $1.6 billion in the current fiscal year, which ends in May 2026.