Oracle lays off thousands of employees amid investments in artificial intelligence

The American software company Oracle has begun to lay off thousands of employees amid financial pressures generated by massive investments in infrastructure for artificial intelligence, according to CNBC.

Staff reductions have already been announced to some employees, and Oracle's shares have dropped by 26% since the beginning of the year, raising concerns among investors regarding debts and high expenses. With approximately 162,000 employees in May 2025, Oracle continues to sell its core database, but has accelerated investments in data centers for artificial intelligence applications, competing with major cloud service providers.

The company has heavily relied on the debt market to finance its expansion, announcing a plan to raise $50 billion, but has decided not to incur new debt by 2026. Contractual obligations for future revenues have increased by 359%, reaching $455 billion, following an agreement with OpenAI.

Analysts estimate that laying off 20,000-30,000 employees could generate an additional free cash flow between $8 and $10 billion.