Oracle layoffs 2026: The company to let go 30,000 employees to manage AI data centre spending

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• Oracle plans to lay off up to 30,000 employees amid AI expansion
• Layoffs aim to cut costs as Oracle invests in AI and data centers
• Restructuring may cost $1.6B, impacting multiple departments

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Oracle is reportedly preparing to cut jobs across several business units as the company deals with rising financial pressure linked to its artificial intelligence infrastructure expansion. According to reports, the layoffs could impact between 20,000 and 30,000 employees, making it one of the largest workforce reductions in the company’s history.

The move comes as Oracle increases spending on data centres and cloud infrastructure to support its long-term artificial intelligence strategy and commitments tied to OpenAI.

Why Oracle is planning layoffs

The reported layoffs are linked to a growing cash crunch caused by the company’s investments in AI infrastructure. Oracle has been expanding its data centre capacity to support large-scale AI workloads and cloud services.

Estimates suggest the company’s partnership with OpenAI could involve spending of up to $300 billion over time. The scale of the project requires large investments in computing infrastructure, including millions of GPUs and large data centre campuses.

To support these projects, Oracle has already taken on significant debt. Reports indicate the company raised about $58 billion in new debt within two months to finance new data centre developments in the United States. As a result, Oracle’s total debt has crossed $100 billion.

The layoffs are expected to help the company reduce operational costs and free up billions of dollars in cash flow.

The planned job reductions are expected to affect multiple departments across Oracle. Some of the roles targeted for cuts may include positions that the company believes could be replaced or supported by AI systems.

Oracle had around 162,000 employees globally as of 2025. If the planned layoffs reach the upper estimate of 30,000 jobs, it would represent a significant portion of the company’s workforce.

The restructuring programme is expected to cost up to $1.6 billion, including severance payments to affected employees.

AI spending reshaping the tech industry

Oracle is not the only technology company reducing its workforce while increasing investment in artificial intelligence infrastructure. Several technology firms have announced layoffs while spending heavily on AI-focused data centres and computing systems.

Industry analysts say the growing demand for AI computing capacity is pushing companies to redirect spending toward infrastructure and automation, which in turn is reshaping hiring patterns across the technology sector.

Oracle is scheduled to report its fiscal third-quarter earnings on March 10, when more details about the company’s financial outlook may emerge.