The wave of tech layoffs continues, with American tech giant Oracle reportedly beginning thousands of job cuts on Tuesday, March 31. The move comes amid a decline in its stock this year, as the software company contends with a falling share price linked to substantial capital commitments toward expanding its AI infrastructure.
Employees began receiving notifications early on Tuesday. The latest round of layoffs seems to have impacted Oracle’s employees worldwide. “After careful consideration of Oracle’s current business needs, we have made the decision to eliminate your role as part of a broader organisational change…As a result, today is your last working day,” read copies of notifications to employees viewed by Business Insider.
Oracle is grappling with mounting pressure as it tries to keep up with the rapid rise of generative AI. Its core database business faces uncertainty, while heavy AI investments and rising debt are raising investor concerns.
What’s driving the pressure:
Core database business under strain amid AI disruption
Investors worried about declining demand for traditional data systems
Increasing debt and weakening cash flow add pressure
Heavy spending on AI data centres to compete with cloud giants like Amazon
Plans announced to raise $50 billion, though no further debt expected in 2026
The company is reportedly facing several obstacles as it tries to keep pace with the swift expansion of generative AI. Oracle’s main line of business, selling database software, appears to be under significant strain, and investors are concerned that emerging AI models could diminish the need for traditional data systems.
The exact extent of the layoffs is still unknown, as the company has not yet issued an official statement. In the wake of these developments, investor confidence has weakened, with Oracle’s shares declining 25 per cent this year, a sharper fall than that of most other major technology firms.
