Oracle has drawn up plans for a new round of layoffs this month, sources say
Oracle is planning a new round of layoffs to reduce payroll costs as it invests heavily in AI infrastructure. The company has been accumulating significant debt to fund data centers and chip purchases, forcing a balance between capital expenditure and profitability.
Why it matters
It illustrates the 'AI tax' on corporate workforces, where companies prioritize massive infrastructure spending over maintaining current headcount.
Oracle cofounder and chairman Larry Ellison. Justin Sullivan/Getty Images Oracle has drawn up plans for job cuts this month, according to insiders and a document. The company has been racking up billions in debt to fund its AI infrastructure buildout. The cuts could reach double-digit percentages on some teams. Oracle has drawn up plans for a new round of job cuts to reduce payroll as it racks up billions in debt to fund AI infrastructure, according to people familiar with the plans and an internal document viewed by Business Insider. The cuts could reach double-digit percentages on some teams, according to the document. The company has requested managers provide lists of affected employees, with the intention of reducing payroll by the time the second quarter begins on Sept. 1, according to one of the people with direct knowledge. Oracle declined to comment.
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