Oracle Reportedly Planning Massive Layoffs

Oracle is reportedly planning to cut thousands of jobs, potentially as high as 20,000 to 30,000, which could represent 12-18% of their global workforce. The exact number of layoffs remains unconfirmed, and plans are still in progress. These cuts may begin as early as March 2026 and affect multiple divisions within the company. The primary driver for these layoffs is Oracle's need to free up capital for massive investments in AI infrastructure and data centers. Oracle is building gigawatt-scale GPU superclusters optimized for AI training, aiming for faster training and lower costs. This includes a major partnership with OpenAI, involving a $300 billion deal to develop large-scale AI data centers. However, this aggressive AI expansion is causing financial strain, leading to negative cash flow. Wall Street analysts anticipate this heavy spending will keep Oracle's cash flow negative for years. Oracle is exploring various funding options, including raising $45-$50 billion in 2026 through debt and equity financing. Oracle's stock has taken a hit, declining by around 54% since September 2025, resulting in a $463 billion loss in market capitalization. To manage costs, Oracle is also reviewing open job listings in its cloud division and asking new customers to pay a significant portion upfront. They are even considering selling Cerner, their healthcare software company acquired in 2022 for $28.3 billion.