Oracle is cutting up to 30,000 employees to pay for AI data centres

thenextweb.com • March 31, 2026 • business

Key Points:

Oracle initiated what is believed to be its largest layoff in history on 31 March 2026, terminating approximately 18% of its 162,000-strong global workforce, with employees across the US, India, Canada, Mexico, and other countries receiving sudden termination emails.
Investment bank TD Cowen estimates the layoffs will affect between 20,000 and 30,000 employees, freeing up $8-10 billion in cash flow to fund Oracle's aggressive AI infrastructure buildout, which requires an estimated $156 billion in capital spending.
The layoffs were executed without prior warning, with immediate termination and system access cut off on the same day, impacting multiple divisions including Revenue and Health Sciences (RHS) and SaaS and Virtual Operations Services (SVOS).
Despite a 95% increase in net income to $6.13 billion last quarter and a 433% year-over-year rise in contracted future revenue, Oracle is undertaking these cuts to manage the financial demands of its AI investment, having raised $45-50 billion in debt and equity financing in 2026.
Oracle has not publicly confirmed the layoffs or responded to the events, and the company disclosed a $2.1 billion restructuring plan in its March 2026 SEC filing, with around $1.1 billion remaining primarily for severance payments.

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