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14h ago

Oracle Begins Fresh Layoffs While Racing to Build AI Data Centers

Investors will watch whether deeper payroll cuts can offset tens of billions in planned capex and a rising restructuring bill.

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Oracle has partnered with OpenAI for The Stargate Project to build out AI data centres
Layoffs are painful enough. Oracle’s anonymous, impersonal message made them worse — and told remaining employees plenty about the company, David Grossman writes.
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Overview

  • Oracle notified some employees by early‑morning termination emails that their roles were eliminated and that the notice day would be their last working day.
  • Internal documents reviewed by reporters showed double‑digit percentage cuts planned on some teams, though the company has not publicly confirmed the total number of jobs affected.
  • The layoffs follow a regulatory disclosure that Oracle added about $700 million to restructuring estimates, raising the fiscal‑2026 plan to roughly $2.8 billion.
  • The company is financing a huge AI push that produced $28.5 billion in Q1 capital spending and a $90–95 billion full‑year capex forecast while cloud infrastructure revenue rose 121% to $7.4 billion.
  • This round builds on earlier cuts that reduced headcount by about 21,000 in fiscal 2026 and highlights the trade‑offs between heavy, debt‑backed AI expansion and near‑term cost trimming for employees and cash flow.