Oracle plans $2.8B severance program amid AI data center costs
Business
Oracle is rolling out deeper job cuts to handle rising costs from its big push into AI data centers.
The company's plan is estimated at about $2.8 billion, mostly by paying severance to laid-off employees.
Oracle has already accrued about $2.1 billion in costs tied to this plan and expects another $700 million in related costs.
Oracle workforce down 21,000, Ellison selling
Oracle's workforce has already shrunk by 21,000 over the past year, with CFO Hilary Maxson saying it's all about "simplification and efficiency" during tough times.
Meanwhile, Chairman Larry Ellison is set to sell up to 50 million shares (once worth $8.75 billion but now down 16%).
All this comes as Oracle doubles down on AI for clients like OpenAI, even if it means some financial headaches along the way.