Oracle Plans Thousands of Job Cuts in Face of AI Cash Crunch [View all]

Source: Yahoo News

(Bloomberg) -- Oracle Corp. is planning to ax thousands of jobs, among its moves to handle a cash crunch from a massive AI data center expansion effort.

The job reductions will affect divisions across the company and may be implemented as soon as this month, according to people familiar with the matter who asked not to be named discussing the still-private plans. Some of the cuts will be aimed at job categories that the company expects it will need less of due to AI, two of the people said.

Led by Chairman Larry Ellison, Oracle is embarking on a historic build-out of data centers to power AI workloads for customers such as OpenAI. The company, long known for its database software, has been making a transition the past few years to bulk up its cloud computing unit with a focus on AI, intending to become a viable competitor to market leaders Amazon.com Inc. and Microsoft Corp.

Wall Street projects the expenditures by the cloud unit for data centers to push Oracle’s cash flow negative over the coming years before the spending begins to pay off in 2030, according to data compiled by Bloomberg. Last month, Oracle said it would raise as much as $50 billion this year through a combination of debt and equity sales.

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