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Oracle bets billions on AI infrastructure while preparing for more job cuts

• By Ria Duneja
Oracle bets billions on AI infrastructure while preparing for more job cuts

Oracle is reportedly preparing another round of job cuts as it increases spending on AI infrastructure.


Business Insider reported that managers have been asked to identify employees who could be affected before September 1. Some teams could face double-digit cuts.


Oracle has not confirmed the reported layoffs.


AI investment drives cost pressure


Oracle is spending heavily on data centres and cloud capacity to meet demand for AI workloads.


The company expects to raise $45 billion to $50 billion in 2026 to fund the expansion.


It is also building infrastructure for major AI customers, including OpenAI.


The spending has increased pressure to control operating costs. Workforce cuts could help offset some of those costs.


Headcount already down 13%


The reported cuts follow a sharp fall in Oracle's workforce.


Oracle's headcount fell by about 21,000 during the financial year ended May 31. The company finished the year with around 141,000 employees.


That represents a decline of roughly 13%.


India has also been affected. Earlier reports suggested up to 12,000 roles could be cut, although the impact varies across teams.


AI reshapes jobs


Oracle has said AI tools are improving productivity and allowing some work to be handled by smaller teams.


But AI has not necessarily replaced entire roles.


A former Oracle consultant told Firstpost that automation had reduced manual tasks rather than eliminated his job.


“We have been using Oracle AI for a long time. But, I don't think my work was directly replaced by AI,” the former employee said.


He said AI helped automate tasks such as validations, data processing and API integrations.


“I mainly worked on backend using Java and Spring Boot, where we automated things like validations, data processing, API integrations, and other repetitive coding tasks, reducing manual effort,” he said.


Oracle's reported cuts highlight the growing link between AI investment, automation and workforce restructuring across the technology sector.