Oracle Upscales Layoffs, Expected to Increase Restructuring Costs by $700m
- On Monday, Oracle began a new round of layoffs, notifying affected staff their roles were eliminated "as part of a broader organizational change" and that "today is your last working day," two working days after Friday's disclosure of $700m in additional restructuring reserves.
- After spending $55.7bn on data centers last year, Oracle forecasted $90 billion to $95 billion for fiscal 2027 to meet surging AI demand, prompting payroll cuts to offset massive infrastructure debt accumulation.
- Internal documents show some teams face double-digit percentage reductions, while employees confirmed cuts on LinkedIn, Reddit, and Blind on Monday, following a 13% workforce decline of approximately 21,000 employees in the prior fiscal year.
- Oracle expanded its restructuring reserve to around $2.8bn with a $700m addition on Friday, while Analysts at TD Cowen estimate annual payroll savings of $8bn to $10bn, though the company declined to disclose affected headcount.
- Wall Street investors doubt whether cloud growth will generate sufficient cash flow to cover Oracle's rising debt, while roughly two-thirds of the 141,000-person workforce operates outside the United States, requiring compliance with the EU Collective Redundancies Directive's mandatory 30-day standstill period.
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36 Articles
Oracle 6 AM Layoffs: Employees Wake Up to Job Losses as Tech Giant Pushes Deeper Into AI
For some Oracle employees, the Monday morning began with an e-mail that spelled the end of the road. It seems like workers at the technology giant were stunned after they learned that they were fired.The early morning firings are a reminder that the company has been investing billions of dollars into artificial intelligence and cloud.Although the company has not disclosed how many workers woul
Oracle has once again initiated layoffs within its company. Previously, the company had laid off 21,000 employees, and now it has initiated a new round of layoffs. Many people woke up early on Monday morning to emails informing them of their job losses.
(Los Angeles = Yonhap News) Correspondent Kim Kyung-yoon = Oracle, a U.S. IT company burdened with debt from massive investments in artificial intelligence (AI), has once again carried out layoffs.
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