Rajeev Sharma :- Oracle Corporation has laid off thousands of employees worldwide, with some reports suggesting the number could be as high as 30,000, even though the company is earning strong revenue.
The company has not officially confirmed the exact number of job cuts. However, the layoffs are believed to be part of a bigger strategy change, especially as Oracle focuses more on artificial intelligence and data centres.
The job cuts have affected several countries, including India and Mexico. India seems to be one of the most affected, with reports saying around 12,000 employees may have lost their jobs out of a total workforce of about 30,000.
Why did Oracle lay off employees?
One major reason is the company’s strong push into AI infrastructure. Oracle has reportedly signed a $156 billion deal to build AI data centres over five years, mainly for OpenAI.
This expansion needs huge investment. Oracle plans to buy around 3 million specialised chips, and its spending has jumped sharply—from about $6.9 billion a year two years ago to nearly $50 billion now. To manage this, the company is cutting costs in other areas, including jobs.
Debt and financial pressure
Oracle also has heavy debt of over $108 billion, which has increased pressure on its finances.
According to estimates by TD Cowen, the layoffs could help the company save between $8 billion and $10 billion in cash flow. This money will likely be used to support its AI and data centre projects.
The company had also announced a $2.1 billion restructuring plan in March, with nearly $1 billion already spent before the layoffs.
Another concern is rising pressure from lenders, as the cost of insuring Oracle’s debt has increased sharply, reaching levels last seen during the 2009 financial crisis.
