The global tech giant Oracle this week began laying off workers at the company’s offices in the U.S., India, Canada, Mexico and other countries. The move could become one of the largest workforce reductions in Oracle’s history, analysts say. The cuts appear to be tied to the soaring cost of building artificial intelligence infrastructure, specifically data centers.
The layoffs could target 20,000-30,000 workers worldwide, about 18% of the company’s 162,000 employees, investment bank TD Cowen estimated. Oracle has not confirmed the cuts.
The layoffs come as Oracle pursues an aggressive and expensive push into AI. The company plans to build out massive data centers — the large facilities that power AI systems — and the price tag is huge. The job cuts are expected to give the company an extra $8 billion to $10 billion to help fund the buildout, according to TD Cowen.
Outplacement firm Challenger, Gray & Christmas expects tech companies such as Oracle to keep cutting as they move to AI.
The sector announced 52,050 job cuts in the first three months of 2026, a 40% increase from the 37,097 cuts announced a year ago, the firm said.
“Companies are shifting budgets toward AI investments at the expense of jobs. The actual replacing of roles can be seen in Technology companies, where AI can replace coding functions. Other industries are testing the limits of this new technology, and while it can’t replace jobs completely, it is costing jobs,” Challenger said.