US technology corporation Oracle (famous for its database management systems) has begun cutting thousands of jobs globally, as the company stepped up investment in artificial intelligence (AI) infrastructure and faces growing financial pressure.
According to sources, employees in many departments have received contract termination notices from March 31 (local time).
The content of the letter sent to Oracle employees, cited by the world's leading business, financial and technology news site - Business Insider, stated that the cuts are part of "the large-scale organizational restructuring process" to meet current business needs. The exact scale of the layoff has not been officially announced.
This move comes as Oracle's stock has fallen by about 25% since the beginning of the year, a sharper decline than many other technology giants.
This development partly reflects the cautious sentiment of investors before the company's aggressive spending strategy for AI.
For many years, Oracle has been famous for its database management software. However, the explosion of generative AI is changing the market landscape, putting demand for traditional data systems at risk of decline. This forces Oracle to shift direction, accelerating investment in cloud computing and AI infrastructure.
The company has spent billions of USD to build data centers to serve large-scale AI models.
However, compared to major competitors such as Amazon or Microsoft, Oracle is still smaller in the cloud computing field, making competition fierce.
Financial pressure is also increasingly apparent. Oracle has had to borrow money to finance large-scale expansion plans.
Earlier this year, the company announced a plan to raise up to 50 billion USD through a combination of debt and equity.
However, business leaders said that there are currently no plans to borrow more in 2026.
As of May 2025, Oracle has approximately 162,000 employees worldwide. The personnel cut is seen as part of efforts to control costs, improve cash flow and maintain financial stability during the transition period.
On the positive side, Oracle still recorded growth signals in the future. A previous report showed that the remaining payables (RPO), the indicator reflecting future revenue from signed contracts, increased sharply to 455 billion USD, mainly thanks to a large deal with OpenAI.
Some experts believe that restructuring and cost reduction may help Oracle strengthen its financial platform in the short term. However, long-term efficiency still depends on the ability to successfully transition to an AI-based and cloud-based business model.
Oracle's move is also part of a widespread wave of personnel cuts across the technology industry.
Previously, Amazon announced cuts of about 16,000 management positions, Microsoft expected to reduce 15,000 personnel, while Meta also recently laid off hundreds of employees.
In that context, technology giants are balancing between investing heavily in the future of AI and maintaining current financial stability, which is a problem that is not easy to solve quickly.
