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World of Software > Mobile > Oracle cuts its workforce, but spends lavishly on AI
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Oracle cuts its workforce, but spends lavishly on AI

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Last updated: 2026/04/04 at 12:24 PM
News Room Published 4 April 2026
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Oracle cuts its workforce, but spends lavishly on AI
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Software giant Oracle has initiated a significant reduction in its workforce, confirmed by numerous internal testimonies. According to some estimates, around 10,000 positions have already been eliminated! Officially, radio silence: the company did not wish to comment, despite requests from the press.

A wave of layoffs, or rather a tsunami

On professional networks, several executives describe a “ significant reduction in workforce “. The profiles affected are varied: engineers, technical managers, specialists or project managers. And one point often comes up: these departures would not be linked to the performance of each individual. In fact, the scenario is now well known in tech. Emails sent early in the morning, a quick notification, and a month’s compensation. Unfortunately, this is becoming a habit in the industry…

These job cuts come as Oracle doubles down on artificial intelligence. The group plans to invest at least $50 billion in its infrastructure this year, while raising massive funds to support the war effort. Oracle is also participating in Stargate, a vast data center project estimated at $500 billion, alongside OpenAI, SoftBank and the MGX fund, all supported… by Donald Trump.

The leaders of these huge companies explain that AI allows you to do more with less. An idea shared by other tech bosses, like Mark Zuckerberg or Jack Dorsey (Block). We could therefore say that AI is the direct cause of layoffs. But large technology companies have already multiplied social plans in recent years, well before the current wave of generative AI… which will probably not help anything on this front.

Beyond technology, Oracle also has to manage a delicate financial equation. Its stock has fallen about 25% since the start of the year, amid concerns over its massive investments and the debt that comes with them. With around 162,000 employees in 2025, Oracle remains a heavyweight in the cloud and databases, but it operates in a market dominated by even larger players like Amazon.

For some analysts, a broader reduction – up to 30,000 positions – could significantly improve the group’s cash flow. Enough to finance its AI projects more calmly, reassure investors… and create a little more unemployment. On the management side, the speech obviously remains optimistic: demand for AI infrastructures currently exceeds supply, and contracts signed are increasing. The problem is that fewer and fewer humans will benefit directly from it!

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