Oracle Lays Off Thousands, Ramps Up AI Spending

American tech firm Oracle is letting go of thousands of its employees as the company ramps up its investment in AI to compete with other Big Tech companies like Amazon and Alphabet in the cloud computing segment.

Writing on LinkedIn, Michael Shepherd, one of the senior managers at the company, revealed that architects, senior engineers, program managers, technical specialists and operations leaders were affected by the cuts. These employees possessed skills in enterprise systems, cloud infrastructure and sovereign/government cloud environments, he added.

The job losses come at a time when the $420 billion market cap tech firm is working to allay concerns of investors about the ballooning capex being poured into AI projects. In a way, the job losses are intended to keep spending in check while ensuring critical areas like AI projects get the additional funding they require to meet company goals.

The Texas-based firm led by Larry Ellison acknowledged on Tuesday that it had let go 491 employees at its offices in Seattle and those doing remote work while based in Washington State.

The priorities that the company is working on include a data center deal worth $300 billion. This project involves ChatGPT developer OpenAI and will require Oracle to take on $50 billion in debt as part of the funding to actualize this data center. The company expects to spend about $2.1 billion this year on expenses related to the job cuts it is making.

Oracle has about 162,000 employees, and thousands are expected to be let go as the company restructures its operations. According to reports by the BBC, about 10,000 employees have so far been laid off at Oracle. The news outlet cites a company employee whose identity was withheld as the source of this figure.

Oracle isn’t the only tech company laying off employees. Layoffs.fyi, a redundancy site covering the tech industry, reveals that approximately 40,480 positions at 70 firms in the tech field have been cut thus far in 2026. These companies have let go of these employees as focus is directed to AI projects. This has heightened concerns about the disruptive impact of AI on employment opportunities.

According to a repo    rt by Reuters, Meta is planning to reduce its workforce by at least 20%. Job losses are happening at many other leading tech firms, and analysts will be watching how this trend plays out at companies like Microsoft Corp. (NASDAQ: MSFT) that traditionally have thousands of employees at the different locations where they have operations or offices.

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