US technology giant Oracle is laying off thousands of employees as it tries to prove to investors that its big investment in AI infrastructure will pay off.
The $420 billion company based in Austin, Texas, began laying off employees on Tuesday, with thousands of its 162,000 employees expected to leave.
According to the BBC, citing an anonymous employee of the company, about 10,000 people have lost their jobs. Oracle is chaired by billionaire Larry Ellison, a Trump ally who is worth $189 billion, according to Forbes, making him the sixth-richest person in the world.
Oracle senior manager Michael Sheppard posted on LinkedIn that the company was experiencing "massive layoffs." Shepard himself was not affected by the layoffs.
Sheppard said the decision affects "senior engineers, architects, operations leaders, project managers and technical experts with deep expertise in cloud infrastructure, government and sovereign cloud environments, and enterprise-grade systems."
Business Insider first reported the layoffs, which were announced via email: "After careful consideration of Oracle's current business needs, we have decided to eliminate your position as part of broader organizational changes."
Oracle confirmed some of the layoffs on Tuesday, affecting 491 employees working remotely in Washington state and in its Seattle office.
Oracle, a business software company, is increasing investment spending in data centers, the critical infrastructure needed to develop and operate AI systems, in a move aimed at better competing with cloud computing rivals such as Google parent Alphabet and Amazon.com.
Oracle's plans include a $300 billion data center deal with ChatGPT developer OpenAI, but investors are concerned about the billions of dollars in spending its plans would require, including raising $50 billion in new debt.
In a filing in March, Oracle said it expected the total cost of its 2026 restructuring plan to be $2.1 billion, mainly for layoffs and related expenses.
Meanwhile, more than 70 technology companies have cut about 40,480 jobs so far this year, according to tech layoffs website Layoffs.fyi, as companies increasingly reallocate resources to artificial intelligence, fueling employee concerns about AI-driven industry disruption.
Last month, Reuters reported that Meta was planning large-scale layoffs that could affect 20% or more of its workforce.
Oracle declined to comment.
Q&A
Q1: Why is Oracle conducting large-scale layoffs?
A: Oracle’s layoffs are to prove to investors that its large investment in AI infrastructure will pay off. Companies are ramping up investment spending in data centers, critical infrastructure for developing and operating AI systems, in an effort to better compete with cloud computing rivals such as Google and Amazon.com.
Q2: How big is Oracle’s AI investment plan?
A: Oracle’s AI investment plan is huge, including a $300 billion data center agreement with OpenAI and plans to raise $50 billion in new debt. The company expects the total cost of its 2026 restructuring plan to be $2.1 billion, primarily for layoffs and related expenses.
Q3: What is the trend of layoffs in the technology industry?
A: There is an obvious trend of layoffs in the technology industry. According to data from Layoffs.fyi, more than 70 technology companies have laid off about 40,480 people so far this year as companies increasingly reallocate resources to the field of artificial intelligence. There were also reports last month that Meta was planning large-scale layoffs that could affect 20% or more of its employees.
