Oracle cuts about 30,000 jobs amid AI data center expansion
Oracle is letting go of about 30,000 employees, nearly one-fifth of its workforce, as it doubles down on building new AI data centers.
Around one-third of these job cuts are happening in India.
While Oracle says its AI tools are making things more efficient, the real driver seems to be financial pressure from huge investments and mounting debt.
Oracle raises restructuring budget to $2.1B
To cover all these layoffs, Oracle has bumped up its restructuring budget by $500 million, now totaling $2.1 billion for FY26 (June-May), mostly for severance pay.
The company's spending on AI is skyrocketing: from $6.9 billion two years ago to an estimated $50 billion in fiscal 2026, mostly funded by borrowing.
With a debt-to-equity ratio now at 500%, Oracle is taking some big risks compared to rivals who have steadier cash flow and less debt hanging over them.