Oracle, the tech giant, is reportedly planning a massive round of layoffs, which could affect as many as 30,000 employees across the globe. This is while the firm is planning to step up its investment in infrastructure for artificial intelligence technology and large-scale data centres.

Industry reports suggest the layoffs could impact nearly 15 percent in the overall workforce at Oracle. The firm has shown a steady growth rate in its cloud services, but the financial pressure of developing infrastructure for generative AI projects is a significant challenge, especially at this time.

AI infrastructure spending puts pressure on finances

A key factor behind the possible layoffs can be the increased spending on artificial intelligence technology. Oracle has promised to spend billions of dollars developing high-capacity data centres with the latest computing equipment, including Nvidia graphics processing units.

The company is also investing in liquid-cooled data centres capable to accommodate the high requirements of modern artificial intelligence systems. This is a costly affair, especially when it comes to operating costs.

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To keep costs under check without compromising overall financial performance, Oracle is reportedly planning a reduction in some of the departments that are not part of its core growth strategy.

Possible impact across multiple departments

As per a report by Latestly, experts also warn that jobs in marketing, maintaining old software, and admin work are the most likely to face the axe. This is part of a wider trend in the tech industry, with companies increasingly diverting resources from traditional activities to AI-related infrastructure and engineering teams.

The restructuring is also set to make the company leaner, with more funds going towards investing in next-generation tech.

Partnership with OpenAI shapes strategy

Oracle's entry into the infrastructure segment is a direct result of its deal with OpenAI, led by Sam Altman. It is set to play a critical role in providing cloud infrastructure services to OpenAI's needs in large-scale computing, including the Stargate supercomputer.

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The company is also investing heavily in cloud capacity to support the training of advanced AI models. Financial experts say that the company could save between $2 billion and $3 billion annually if it manages to cut 30,000 jobs, Latestly reported. However, this would most likely be used to invest in the company's infrastructure, enabling it to stay ahead of competitors in the cloud segment, including Microsoft and Amazon Web Services.

Employees await official communication

These layoffs follow the company’s decision to lay off employees gradually in 2024 and 2025. Employees in key tech hubs across the US, India, and various European nations are awaiting formal communications from the company regarding the layoffs.

Although Oracle has not officially disclosed the exact timing of the layoffs, sources indicate that internal notifications could begin in the first quarter of Oracle’s 2026 fiscal year as part of the company’s broader restructuring effort to develop more AI infrastructure.