Oracle has started informing its 162,000-strong workforce that thousands of jobs will be cut in a new round of layoffs, according to a report by CNBC. This move from the software giant comes as it seeks to free up cash to fund its aggressive build-out of AI data center infrastructure. Oracle’s stock traded slightly lower on April 1, highlighting the unease of investors over the company’s increasing capital expenditure. While the shares closed up nearly 6% on March 31, they remain down about 25% year-over-year. In February this year, Oracle announced its plans to raise up to $50 billion in 2025 through debt and equity to expand cloud capacity for major customers including Nvidia, Meta, OpenAI, AMD, and xAI.

Oracle’s layoffs are consistent with its FY26 Restructuring Plan

As per the CNBC report, analysts at Barclays also noted that layoffs at Oracle are consistent with the company’s FY26 Restructuring Plan, adding that the market may welcome the cost savings. They further highlighted that Oracle generates less profit per employee as compared to rivals, with lower productivity levels. However, they expect Oracle to triple revenue in the coming years, driven by minimal headcount growth and reduced operating costs.Oracle’s spending spree mirrors moves by hyperscalers like Alphabet, Microsoft, Meta, and Amazon, which together are committing nearly $700 billion this year to AI infrastructure. Analysts warn that such massive investments could weigh on free cash flow without clear near-term returns, fueling investor anxiety across the sector.

Oracle laid off employees across global offices

Earlier this week, Oracle started laying off employees across its global offices, with workers in US, India, and other regions reporting termination emails landing in their inboxes as early as 6AM EST on Tuesday. The emails, sent from “Oracle Leadership,” informed employees that their roles had been eliminated as part of a broader organisational change—and that the day they received the email was their last working day. There was no prior intimation, no call from HR, no manager loop-in. Just an email.For US employees, Oracle is offering four weeks of base salary for the first year of employment, plus one additional week for every year after that, up to a maximum of 26 weeks. To qualify for a full year in the calculation, employees must have worked at least six months in their last year. The payout will also be adjusted in states with a WARN notice period.