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yesterday

Oracle Cuts Nearly 350 Cloud Roles To Offset Rising AI Data-Center Expenses

Layoff notices in Seattle and the Bay Area underscore Oracle’s challenge of funding steep AI data-center investments tied to its OpenAI contract.

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Tech giant Oracle Corp. has another round of layoffs.
Oracle America campus on Oracle Parkway in Redwood City. (Google Maps)
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Overview

  • State filings from Washington and California confirm 161 layoffs in Seattle and more than 188 job cuts in the Bay Area scheduled for mid-October.
  • Sources say reductions extend across OCI teams in the U.S., India and Canada, affecting Enterprise Engineering, Fusion ERP, data-center operations and AI/ML project managers.
  • Some of the cuts were linked to performance reviews even as Oracle continues hiring in other cloud roles to support major AI capacity deals.
  • Oracle’s Stargate initiative with OpenAI includes about 4.5 gigawatts of data-center power and has driven tens of billions in capital commitments, leaving free cash flow negative for the fiscal year ending May.
  • The total scope of the workforce reductions remains unclear and recent employee meetings in additional regions have fueled concerns of further job cuts.