GoKawiilOracle has started informing employees via email that it’s cutting thousands of jobs, according to CNBC. The company’s stock has dropped 25% this year as it borrows billions to build AI data centers, and investors are concerned it’s running low on cash.
The numbers back that up. Oracle raised $50 billion in debt and equity in January to fund its AI buildout, constructing data centers that can handle AI workloads. In September, Oracle disclosed that its contracted revenue jumped 359% to $455 billion following a $300 billion agreement with OpenAI. But the company is smaller than rivals like Amazon, and its core database business faces competitive pressure.
The company employed 162,000 people as of May 2025. Cutting 20,000 to 30,000 employees could lead to $8 billion to $10 billion in incremental free cash flow, according to TD Cowen analysts. Oracle executives remain bullish despite the cuts. “Demand for AI infrastructure continues to exceed supply,” new CEO Clay Magouyrk said on an earnings call, pointing to $553 billion in future contracts.