Oracle Employees Are Hit by Fresh Layoffs Amid Exploding AI Infrastructure Costs

Oracle has started another round of layoffs, according to Business Insider, just months after cutting 21,000 employees, or roughly 13% of its workforce.

Employees in the U.S. and potentially other regions have received termination notices. Affected workers were reportedly told that Oracle eliminated their positions as part of a “broader organizational change.”

The exact number of employees affected and the geographical scope of the latest cuts remain unknown.

Oracle layoffs appear to be widespread

Reports from affected employees have appeared on LinkedIn and Reddit, suggesting the layoffs may extend across multiple teams.

Some workers reportedly lost access to Oracle’s internal systems immediately after receiving their termination notices. Oracle then instructed them to contact HR through their personal email addresses for information about severance.

Oracle has not publicly disclosed which departments or business units the latest layoffs affect.

AI and data center spending continues to surge

Oracle has not given a specific reason for the new layoffs, but the cuts come as the company dramatically increases spending on AI infrastructure and data centers.

The company reported $28.5 billion in expenditures during its first fiscal quarter. Oracle also expects its 2027 expenditures to reach approximately $90 billion to $95 billion.

Oracle continues making major financial commitments to expand infrastructure for growing AI computing demand. That timing has fueled speculation that the layoffs could be connected to the company’s rising AI and data center spending, although Oracle has not confirmed such a link.

In other AI news, ENISA warns that AI could weaponize new vulnerabilities in a matter of minutes, while China doesn’t plan to slow down its AI development.