Oracle plans to cut thousands of jobs to address cash flow pressures resulting from the expansion of AI data centers

SmartContractAuditor · 2026-03-09T02:21:21+00:00

Oracle plans to cut thousands of jobs mainly due to reduced demand caused by AI development. The company is building data centers to support AI workloads, and cash flow is expected to turn negative in the coming years. Meanwhile, Oracle is also reviewing its cloud division's hiring process, and the stock price has already fallen 54%.

SmartContractAuditor

2026-03-09 02:21:21

Abstract generation in progress

Odaily Planet Daily reports that Oracle is planning to cut thousands of jobs across multiple departments, possibly as early as this month. Some layoffs target roles that the company believes have decreased in demand due to AI development. As of the end of May 2025, Oracle has approximately 162,000 employees worldwide, and the layoff plan is still underway, with specific details subject to change.

Oracle is currently building large-scale data centers to support AI workloads for clients like OpenAI. Wall Street expects that the data center expenses in this cloud division will lead to negative cash flow for Oracle over the next few years, with returns expected around 2030. Last month, Oracle announced it would raise up to $50 billion through debt and equity issuance this year.

Additionally, Oracle announced internally this week that it will review many open positions in its cloud division, effectively slowing or freezing recruitment. Oracle’s stock has fallen 54% from its September 2025 high to Wednesday’s close. The company previously disclosed its largest restructuring plan in documents, with related costs reaching up to $1.6 billion this fiscal year. The company is scheduled to release its third-quarter earnings on Tuesday.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.