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2mo ago

Oracle Plans Thousands of Layoffs as AI Data-Center Push Squeezes Cash

Heavy AI data-center spending has strained cash flow to the point that Oracle plans to raise $45–$50 billion.

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Overview

  • Layoffs across multiple divisions could begin in March, with some roles targeted that the company expects to need less as AI advances, according to reports citing people familiar.
  • Oracle has begun reviewing many open roles in its cloud unit, effectively slowing or freezing hiring, internal notices indicate.
  • Investors have grown wary of funding needs for capacity to serve customers including OpenAI, with some reports also citing xAI and Meta, and the company has not commented on the layoff plans.
  • Shares fell as much as 1.5% to $150.12 on the news and are down about 54% since a September 2025 peak after earlier AI-driven gains.
  • A restructuring disclosed in September 2025 could cost up to $1.6 billion this fiscal year, and analysts project negative cash flow for several years before potential payback around 2030.