Oracle has begun notifying thousands of employees of their terminations as the software giant moves to cut costs in the face of mounting financial pressure from its aggressive push into artificial intelligence infrastructure.
Termination emails landed in workers’ inboxes as early as 6 a.m. on Tuesday, March 31.
The emails delivered swift and immediate news to affected employees across multiple divisions of the company.
“After careful consideration of Oracle’s current business needs, we have made the decision to eliminate your role as part of a broader organizational change,” the email read, according to Business Insider. “As a result, today is your last working day.”
The email continued: “We are grateful for your dedication, hard work, and the impact you have made during your time with us. After signing your termination paperwork, you will be eligible to receive a severance package subject to the terms and conditions of the severance plan.”
The layoffs began on March 31, 2026, targeting multiple divisions and are the largest restructuring in Oracle’s history, following a smaller round that affected approximately 3,000 employees in September 2025 across India, the United States, Canada, and the Philippines.
Analysts at TD Cowen placed the potential range of job cuts between 20,000 and 30,000 positions, which would represent approximately 12 to 18 percent of Oracle’s global workforce.
Oracle employed approximately 162,000 people globally as of May 2025.
Analysts at TD Cowen estimated that cutting between 20,000 and 30,000 employees could generate between $8 billion and $10 billion in incremental free cash flow.
The cuts span global operations and are broader in scope than Oracle’s typical rolling reductions.
Quartz reported that some positions being eliminated fall into job categories the company expects to need less of due to AI advancements, though the primary driver is financial pressure from the data center buildout.
Oracle has been pouring capital into building data center infrastructure capable of handling AI workloads. Oracle has taken on $58 billion in new debt in recent periods, pushing its total debt load past $100 billion. The company faces negative cash flow projections from AI infrastructure expansion and has estimated restructuring costs of up to $1.6 billion for the fiscal year ending May 2026, including severance, according to MLQ.
In January, the company announced plans to raise $50 billion through a combination of debt and equity. The company later said it does not expect to raise additional debt in 2026.
Oracle’s co-CEO Clay Magouyrk told investors on a recent earnings call that demand for AI infrastructure “continues to exceed supply,” pointing to $553 billion in remaining performance obligations as evidence of ongoing demand.
Oracle’s stock price had fallen roughly 25 percent in 2026 prior to Tuesday’s announcement, per reports. Its stock rose approximately 5 percent Tuesday afternoon on the news of the layoffs.
