Oracle layoffs 2026: Why is Larry Ellison-led firm laying off thousands of employees and how is OpenAI linked to it?
According to a Bloomberg report, Oracle Corporation is preparing to implement mass layoffs that could affect thousands of employees in various departments. Layoffs could start this month.
The move is reportedly part of Oracle’s efforts to manage a cash crunch resulting from its massive spending on AI data centers, a key investment area, at a time when technology firms are racing to build infrastructure for AI services.
Along with the layoffs, Oracle also told staff this week that it would reconsider most job openings in its cloud division, effectively slowing or temporarily halting new hiring.
Which departments are at risk?
It is still unclear which departments will be affected by mass layoffs at Oracle. More details on the nature of the layoffs are awaited.
However, two people aware of the matter told the news agency that some of the layoffs will be aimed at job categories that the company expects to shed due to artificial intelligence.
As of the end of May 2025, the company had approximately 162,000 employees worldwide. Planning for workforce reductions is still active and could change, people who spoke to Bloomberg said.
How does Sam Altman’s OpenAI relate to this?
The news stated that Oracle, led by Chairman Larry Ellison, has begun the construction of a historic data center aimed at strengthening the artificial intelligence workloads of major customers such as OpenAI, led by Sam Altman.
The software company has long been known for its database products, but has been shifting its strategy in recent years to grow its cloud computing business with a strong focus on artificial intelligence. Through these efforts, Oracle aims to position itself as a viable competitor against market leaders such as Amazon and Microsoft.
Artificial intelligence-driven layoffs in the technology industry
The high up-front costs of expanding AI infrastructure have led companies to cut expenses elsewhere; Many technology companies are implementing cost-cutting measures as they try to balance their budgets while investing heavily in artificial intelligence capabilities.
In January alone, Amazon cut 16,000 corporate roles in its second mass layoff since October. According to Forbes, Nike cut jobs at 775 distribution centers in Tennessee and Mississippi, and Home Depot eliminated 800 positions, mostly in its technology organization.
In September last year, Oracle announced in a stock exchange filing that it was planning its largest-ever restructuring; this would cost $1.6 billion in the current fiscal year ending in May, including severance payments for current employees. The software company is scheduled to report fiscal third-quarter earnings on March 10.
(With input from institutions)
