Enterprise software provider Oracle is moving to reduce headcount by the thousands as it contends with a cash squeeze stemming from a major effort to expand AI-focused data-center capacity, Bloomberg reported on Thursday.
Once a smaller presence in the cloud market, Oracle has grown into a significant supplier of rented computing power over the past year, aided in part by a $300 billion agreement with OpenAI. That growth, however, has prompted investor concerns over how the company will finance the extensive data-center buildout required to support OpenAI and other large customers such as Elon Musk's xAI and Meta.
In February, Oracle publicly outlined plans to secure $45 billion to $50 billion within the year to enlarge its cloud infrastructure, a financing goal that has fed unease about the company's rising debt burden. Bloomberg's reporting says the planned layoffs will span multiple divisions and could begin as soon as this month, according to people familiar with the matter.
Some of the roles targeted for elimination are reportedly positions Oracle expects will shrink as AI adoption reshapes work categories. Bloomberg said the proposed reductions are broader than the company’s customary rolling job cuts. Separately, the company informed staff this week that it would review many open positions in its cloud division, effectively slowing or freezing hiring there.
Oracle had about 162,000 full-time employees as of May 31, 2025, according to its annual filing with the U.S. Securities and Exchange Commission. Oracle declined to comment when contacted by Reuters.
Context note: Reporting indicates a combination of aggressive infrastructure expansion and changes in workforce needs driven by AI are motivating the company's cost and hiring actions. Details on the final scope and timing of the reductions were not provided in the reporting cited.