Oracle Plans Thousands Job Cuts

Oracle Corporation is planning thousands of job cuts across its divisions, expected to be implemented as soon as this month. This decision stems from a cash crunch caused by a massive AI data center expansion effort, which includes a $300 billion deal with OpenAI and serving customers like xAI and Meta Platforms. Oracle Corporation aims to raise $45 billion to $50 billion this year to fund its cloud infrastructure expansion, fueling investor concerns about its rising debt load. Some job cuts are specifically targeting categories expected to shrink due to AI. The company also announced an internal review of open job listings in its cloud division, effectively freezing hiring. Oracle Corporation's shares have fallen significantly, and its December results showed a $10 billion cash burn for the first half of the fiscal year. This follows a previous disclosure of a $1.6 billion restructuring plan.