Oracle Plans Thousands of Job Cuts Amid AI Costs

Oracle, the enterprise software giant chaired by billionaire Larry Ellison, is preparing to cut thousands of jobs across multiple divisions as it grapples with a cash shortage fueled by aggressive investments in artificial intelligence infrastructure. The reductions, which could begin as early as this month, mark a broader effort than the company's usual periodic layoffs and target roles expected to diminish with advancing AI capabilities, according to people familiar with the matter who spoke to Bloomberg News.

The planned workforce reductions come amid Oracle's rapid push into the cloud computing market, where it has secured high-profile contracts to provide data center capacity for AI operations. Over the past year, Oracle has elevated its position among major cloud providers through a multiyear, $300 billion agreement with OpenAI, as well as deals with Elon Musk's xAI, Meta, Nvidia, AMD, and ByteDance, the parent of TikTok. These partnerships require substantial expansions in data centers to handle the immense computing demands of AI models, but they have strained the company's finances.

In December, Oracle revised its capital expenditure forecast for fiscal 2026 upward by...