software maker oracle Two people familiar with the move told CNBC that the company has begun telling employees it is implementing a series of layoffs.
The layoffs numbered in the thousands, said the people, who requested anonymity due to confidential matters.
As of May 2025, the company had 162,000 employees.
Oracle’s stock price has fallen 27% so far this year as investors ponder the competitive risks posed by generative artificial intelligence models and the impact of infrastructure investments on Oracle’s cash flow.
Oracle declined to comment.
Oracle continues to advance its flagship database for storing and serving enterprise information, while accelerating capital spending to build data center infrastructure capable of handling AI workloads.
In September, Oracle revealed that its remaining performance obligations, a measure of unrecognized contract revenue, jumped 359% to $455 billion following a contract with OpenAI worth more than $300 billion. A few weeks later, Oracle selected executives Mike Sicilia and Clay Magouyrk to replace CEO Safra Catz.
Oracle has relied on the bond market to fund its expansion. In January, Oracle announced plans to raise $50 billion in debt and equity. Oracle executives said during an earnings call last month that the company no longer plans to raise debt in 2026.
TD Cowen analysts led by Michael Elias wrote in a January note that cutting 20,000 to 30,000 employees could increase free cash flow by $8 billion to $10 billion.
Executives say investments in AI will pay off over time. “Demand for AI infrastructure in both GPUs and CPUs continues to exceed supply, which is directly reflected in our remaining $553 billion of performance obligations,” Magouyrk said on the earnings call.
Business Insider reported on the layoff announcement early Tuesday.
clock: Oracle fires ‘thousands’ of employees, officials said
