Oracle plans to cut thousands of jobs amid AI data centre cash crunch

Group 1 - Oracle Corp. is planning to reduce thousands of jobs as part of its strategy to manage a cash crunch resulting from a significant AI data center expansion [1][4] - The job cuts will impact various divisions within the company and are expected to be implemented soon, with some positions being eliminated due to anticipated reduced needs from AI advancements [1][4] - The company is undergoing a historic build-out of data centers to support AI workloads for clients like OpenAI, transitioning its focus towards cloud computing and AI to compete with leaders like Amazon and Microsoft [2] Group 2 - Wall Street forecasts that the expenditures for the cloud unit's data centers will lead Oracle's cash flow to turn negative in the coming years, with profitability expected to begin in 2030 [3] - Oracle plans to raise up to $50 billion this year through a mix of debt and equity sales to support its initiatives [3] - The company is currently reviewing open job listings in its cloud division, effectively slowing or freezing the hiring process as part of its restructuring efforts [4][5] Group 3 - Oracle's restructuring plan is projected to cost up to $1.6 billion in the current fiscal year, which includes severance payments for departing employees, marking the largest restructuring effort in the company's history [7] - Despite initial investor enthusiasm that led to a 61% stock increase in 2024, Oracle's shares have fallen 54% from their September 2025 peak due to rising costs associated with its AI initiatives [8]