NEED TO KNOW<\/p>\n
Oracle announced major layoffs on March 31<\/p>\n
The move comes as the company seeks to raise money for its massive data center infrastructure buildout<\/p>\n
Other tech companies including Amazon, Microsoft and Meta have recently laid off thousands of employees<\/p>\n
Oracle, the software corporation chaired by Larry Ellison<\/a>, announced major layoffs on Tuesday, March 31, multiple outlets reported.<\/p>\n The full extent of the global layoffs is unclear, according to Business Insider<\/a>, but those affected include software engineers in Oracle’s cloud computing business, according to the outlet, which cited LinkedIn posts. As of May 2025, the company employed 162,000 full-time employees, according to public filings.<\/p>\n The Wall Street Journal<\/a> also reported that the scope of the layoffs is unclear. The outlet noted that “some employees said internal metrics show the count of reductions thus far in the thousands.”<\/p>\n Oracle shares have fallen 27% this year, according to CNBC<\/a>, amid investor fears AI technologies will replace traditional software tools; however, top Oracle executives have sought to downplay these fears, with executives telling investors the company is <\/a>“very, very good” at cost-cutting<\/a>, Business Insider reported.<\/p>\n According to CNBC and WSJ, TD Cowen analysts found that cutting 20,000 to 30,000 employees could lead to $8 billion to $10 billion in incremental free cash flow.<\/p>\n The move comes as the company is seeking to cut costs to fund its increased AI infrastructure spending, Business Insider and CNBC<\/a> reported.<\/p>\n In January, Business Insider reported<\/a> that Oracle, in conjunction with OpenAI, aimed to raise $500 billion for their data center infrastructure initiative, dubbed Stargate. In February, Oracle announced<\/a> that they were raising up to $50 billion in debt and equity to fund the buildout.<\/p>\n Affected employees received an email memo from Oracle leadership on Tuesday, Business Insider reported<\/a>.<\/p>\n “After careful consideration of Oracle’s current business needs, we have made the decision to eliminate your role as part of a broader organizational change,” the memo reads. “As a result, today is your last working day.”<\/p>\n “We are grateful for your dedication, hard work, and the impact you have made during your time with us,” the notice continues.<\/p>\n