AI burns money, employees pay the bill? Oracle Corporation (ORCL.US) initiates a new round of layoffs, potentially affecting 30,000 employees.

In the context of ongoing investment in artificial intelligence infrastructure, Oracle Corporation (ORCL.US) is cutting costs through layoffs to support its large-scale AI layout. According to media reports, the company initiated a layoff plan on Tuesday, involving employees from multiple regions around the world. The exact scale of the layoffs has not been officially disclosed, but market sources say the impact is extensive. Data from a tech layoff tracking platform shows that this adjustment may affect about 18% of employees, or around 30,000 people. However, Oracle Corporation has not responded with specific numbers, only notifying some employees through internal emails that their positions have been eliminated. In the email, the company stated that this organizational restructuring is based on current business needs, and related employees will have their "last working day effective immediately." Industry insiders point out that this move reflects the company's efforts to balance financial pressures by increasing capital expenditures while cutting operating costs. According to the latest annual report data, as of May 2025, Oracle Corporation had approximately 162,000 full-time employees, with about 58,000 in the United States and 104,000 distributed overseas. The company's employee structure covers cloud services, sales and marketing, hardware, services, research and development, and administration, with overall longer tenures, averaging around 8 years and about 30% of employees serving for over 10 years. These layoffs are occurring against the backdrop of the company significantly increasing its AI investments. In its fiscal third-quarter report for 2026, Oracle Corporation expects annual capital spending to reach $50 billion and anticipates revenue for fiscal year 2027 to reach $90 billion. The company is rapidly expanding its AI data centers and related infrastructure to compete for a new round of technological advantages. However, there are still differing opinions in the capital markets about its prospects. Since reaching a historic high of $328 in September 2025, Oracle Corporation's stock price has fallen by over 50%, indicating that investors are still cautious about the returns on its high investment strategy. Furthermore, Oracle Corporation also plays a key role in several important projects, including potential transactions involving the acquisition of TikTok's U.S. business and participation in the large-scale AI infrastructure project "Stargate." Analysts believe that with ongoing expansion of AI investments, similar cost-cutting adjustments may become a norm for tech giants.