Oracle to Cut 30,000 Jobs by Mid-June Despite Cloud and AI Growth

Oracle is in the final stages of its most extensive workforce reduction to date, with an estimated 30,000 employees, roughly 18% of its global staff, expected to depart by June 15, 2026. This restructuring is notable as it coincides with Oracle's strong financial performance, particularly in its cloud and artificial intelligence (AI) sectors. The company recently reported a 22% year-on-year revenue increase to $17.2 billion, with cloud revenue surging by 44% to $8.9 billion in the third quarter of fiscal 2026. The decision to reduce its workforce despite booming growth reflects Oracle's strategic pivot towards aggressive investment in AI infrastructure. The company has earmarked nearly $50 billion in capital expenditure for fiscal 2026, primarily directed at expanding AI data centers and cloud capabilities. Oracle is also a key participant in the Stargate AI infrastructure project, a large-scale venture supported by OpenAI and SoftBank. Executives indicate these layoffs are part of a broader effort to redirect resources towards high-growth AI businesses to meet the escalating demand for computing capacity. This move highlights a significant shift in Oracle's operational focus, prioritizing AI infrastructure over labor-intensive operations, even as its AI business experienced a remarkable 243% growth in Oracle Cloud Infrastructure's AI segment, and multicloud database revenue soared by 531%. The company's remaining performance obligations, a key indicator of future contracted revenue, also climbed 325% year-on-year to $553 billion, signaling strong long-term demand for its AI infrastructure.