Oracle To Slash 30,000 Jobs Despite AI Boom And Surging Cloud Revenues

Oracle is reportedly nearing completion of a workforce reduction programme that could result in almost 30,000 employees being laid off by mid-June 2026, despite continued growth in its cloud computing and artificial intelligence businesses.

According to Money Control, the planned cuts may affect roughly 18 per cent of Oracle's global workforce, making it one of the largest restructuring exercises in the company's history if completed as reported.

The move comes at a time when Oracle is posting strong financial results and increasing investments in cloud infrastructure, AI services, and large-scale data centre projects.

While the company has not publicly provided further details on the reported layoffs, the timing has drawn attention, as the reductions are occurring alongside substantial revenue growth. The restructuring is reportedly linked to Oracle's long-term strategy as it channels resources towards expanding its position in the rapidly growing AI and cloud computing markets.

Layoffs Reportedly Nearing Completion

According to a report, Oracle has entered the final phase of its workforce reduction programme, with affected employees reportedly reaching their official separation dates between June 1 and June 15.

If the reported figures are realised, nearly 30,000 employees will have been impacted by the restructuring effort. The cuts are said to represent around 18 per cent of Oracle's global workforce and would rank among the most extensive job reductions the company has carried out.

Oracle has not publicly disclosed additional information regarding the reported layoffs. However, the timing of the reductions has attracted scrutiny, given the company's recent financial performance and continued expansion in several high-growth business areas.

The report suggests that the restructuring is part of a broader effort to redirect resources towards sectors that Oracle believes will drive future growth. Company executives have reportedly indicated that the changes are designed to support long-term opportunities in artificial intelligence computing and cloud services.

The workforce reductions also come as Oracle increases spending on infrastructure projects to meet growing demand for AI-powered services. Rather than slowing investment, the company appears to be accelerating spending in areas viewed as critical to its future strategy.

Cloud And AI Growth Remain Central To Strategy

Despite the reported layoffs, Oracle continues to report strong results across its cloud and artificial intelligence businesses.

During the third quarter of fiscal 2026, Oracle generated revenue of approximately £12.7 billion ($17.2 billion), reflecting a 22 per cent increase compared with the same period a year earlier. Cloud services remained one of the company's strongest performing segments, with cloud revenue reaching approximately £6.6 billion ($8.9 billion), representing annual growth of 44 per cent.

Oracle also reported substantial growth in its AI-related operations. According to the report, Oracle Cloud Infrastructure's AI segment recorded year-on-year growth of 243 per cent.

Meanwhile, multicloud database revenue increased by 531 per cent, highlighting rising demand for the company's cloud-based data services.

The company posted GAAP net income of approximately £2.7 billion ($3.7 billion) during the quarter, further underlining the strength of its financial performance.

At the same time, Oracle is committing major resources to support future expansion. The company has earmarked nearly £36.9 billion (nearly $50 billion) in capital expenditure for fiscal 2026, with much of that spending expected to be directed towards AI-focused data centres and cloud infrastructure projects.

Oracle is also involved in Stargate, a large-scale AI infrastructure initiative backed by OpenAI and SoftBank. The project reflects the growing importance of AI infrastructure as technology companies race to build the computing capacity required for increasingly advanced artificial intelligence systems.

While Oracle's financial results have remained strong, some affected employees have reportedly expressed concerns about severance arrangements and the treatment of unvested stock awards. According to the report, Oracle's severance package includes tenure-based compensation that is capped at 26 weeks.

The reported layoffs have generated discussion because they coincide with a period of strong business growth. Nevertheless, Oracle appears focused on reshaping its workforce while continuing to expand its AI and cloud operations amid increasingly intense competition across the technology sector.