The job reaper of AI has visited many a home in the past year alone, and this time it's knocking at Larry Ellison's door. According to a Bloomberg report citing inside sources, the database and cloud service giant is preparing to fire thousands of people across multiple divisions.
These layoff plans are still private, but Bloomberg's sources expect they'll happen this calendar month. As for a reason for the cuts, two informants said they'll happen in job categories that Oracle expects to effectively backfill with AI. This new wave of cuts is also reportedly not within the scope of the firm's usual layoff cycle.
The backdrop for these cuts is that just like OpenAI, Oracle is posting large bets on AI datacenters and expects to be deep in the red until 2030, spending hundreds of billions along the way. Investors aren't taking kindly to the gargantuan scale of these investments nor to the circular nature of their ecosystem, and consequently, Oracle's stock price has dropped about 50% since its September 2025 peak. That said, the firm is still trading well above 2023 levels.
All things considered, it's not out of the question that Ellison might not just be optimizing its workforce, but rather applying a chainsaw to the firm's spending so it can weather the coming spending storm. It's slightly puzzling that the hiring freeze would extend to cloud service job listings, since those are supposed to enable Oracle to execute its plan.
Some investors even went as far as suing the company for misrepresenting its spending and borrowing predictions. Oracle plans to raise around $50 billion through debt and equity sales, so it's a fair guess that Ellison's bean counters are working hard to balance the books.
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