Tech giant Oracle is cutting thousands of jobs due to a plummeting stock price and concerns over its high capital commitments for building out AI infrastructure. The company, which employed 162,000 people as of May 2025, is facing pressure from investors about debt and dwindling cash flow. To fund its AI buildout, Oracle has taken on significant debt, including a $50 billion raise in January. Analysts estimate that cutting 20,000 to 30,000 employees could generate $8-10 billion in incremental free cash flow. Despite executives claiming the long-term benefits of AI investment will pay off, the company’s AI investments are struggling to meet demand for its GPU and CPU infrastructure.
Source: https://www.cnbc.com/2026/03/31/oracle-layoffs-ai-spending.html