Rabat– Oracle Corporation is preparing to cut up to 30,000 jobs in the coming days, according to converging reports.
The decision could mark one of the most significant workforce reductions in Oracle’s history, reflecting the financial strain tied to its expanding artificial intelligence (AI) ambitions.
The planned layoffs come at a time when the company’s shares have fallen by nearly 25%, largely due to investor concern about the scale of Oracle’s capital commitments.
The company has been investing heavily in data center infrastructure to support AI services, positioning itself as a key player in the next phase of enterprise computing.
A central element of this strategy is Oracle’s participation in the US-based “Stargate” initiative, a large-scale effort to build a network of advanced data centers with an estimated value of $50 billion, according to Reuters.
The project reflects a broader industry shift, as major technology companies race to secure the infrastructure needed to power AI systems.
However, the scale of this investment has raised questions among investors. Oracle is facing sustained pressure to justify both its rising debt levels and the pace of spending on AI infrastructure.
The layoffs appear to be a direct response to these concerns, as the company seeks to protect margins and reassure shareholders.
Oracle is expected to cut between 20,000 and 30,000 positions from a global workforce estimated at around 162,000 employees, based on figures from May.
The reduction could improve the company’s free cash flow by between $8 billion and $10 billion, providing additional financial flexibility at a time of elevated capital expenditure.
The restructuring is intended to reduce operating costs while allowing Oracle to maintain its long-term investment plans. Rather than scaling back its AI strategy, the company appears to be reallocating resources internally, shifting spending away from payroll and toward infrastructure development.
The impact of the cuts is expected to be broad. The layoffs are not limited to isolated roles but extend to entire job functions within the company’s organizational structure.
Positions in areas such as software engineering and sales are among those affected, reflecting a wider realignment of priorities.
Senior executive Michael Shepherd, who was not affected by the layoffs, said the decisions were not primarily based on individual performance. His comments suggest that the cuts are structural rather than performance-driven, a point that has done little to ease frustration among employees.
In recent days, a growing number of posts from affected staff have appeared on the platform, highlighting the human impact of the restructuring and the uncertainty facing workers across the technology sector.
Oracle’s move reflects a broader pattern within the industry, where companies are balancing aggressive investment in AI with the need to maintain financial discipline. As infrastructure costs rise, workforce reductions have become a recurring tool to offset spending and preserve profitability.
Founded in 1977 by Larry Ellison, Bob Miner, and Ed Oates, Oracle has evolved into one of the largest technology companies in the United States. Its database software remains widely used, while its cloud business has become an increasingly important driver of growth.
For Oracle, the current moment reflects a strategic calculation rather than a retreat. The company is betting that sustained investment in AI infrastructure will secure its position in a rapidly changing market, even if that path requires difficult short-term decisions on costs and employment.
