Oracle cuts staff as AI spending jumps to $28.5B
Oracle is letting some employees go as it shifts focus to building up its artificial intelligence (AI) and cloud infrastructure.
The company hasn't said exactly how many people are affected, but US staff are getting at least four weeks' pay plus extra based on how long they've worked there (no cap mentioned).
This move comes as Oracle pours money into AI, with spending jumping from $8.5 billion last year to $28.5 billion this quarter.
Oracle Cloud Infrastructure revenue up 121%
While the layoffs are tough news, Oracle's cloud business is booming: revenue for Oracle Cloud Infrastructure shot up 121% year over year to $7.4 billion.
The company has also locked in more than $30 billion in new AI cloud contracts, bringing its future contracted revenue to a massive $664 billion.
All signs point to Oracle betting big on an AI-powered future, even if it means making some hard choices now.