Austin, Texas, March 5, 2026, 16:42 (CST)
- Bloomberg reported that Oracle is planning to eliminate thousands of jobs.
- Oracle is upping its AI data-center buildout, aiming to support OpenAI and other major clients.
- Eyes are on Oracle’s cash burn and capex in the run-up to the March 10 results.
Oracle Corp (ORCL.N) is planning to slash thousands of jobs, aiming to relieve cash pressures linked to its massive AI data-center expansion, according to Bloomberg News on Thursday. The company would not comment.
The report drops while Oracle ramps up spending on fresh data centers aimed at handling AI jobs for clients like OpenAI—a move tied to its bigger ambitions in cloud. That pivot has put Oracle up against heavyweight cloud players Amazon.com and Microsoft.
Back in December, Oracle bumped up its capital expenditure guidance for fiscal 2026, telling investors to expect $15 billion more than the previously stated $35 billion. The company’s December numbers revealed it had already burned through around $10 billion in cash during the fiscal year’s first half. Third-quarter results are on tap for Tuesday.
Bloomberg reports Oracle is prepping layoffs that could hit multiple divisions as early as this month. The company is targeting positions it expects AI will make obsolete, and it’s been re-examining hiring in its cloud business—open roles there have slowed or stopped altogether, according to the report.
Back in February, Oracle outlined plans to tap between $45 billion and $50 billion in 2026, relying on a blend of equity and debt to ramp up its cloud infrastructure. “The perception is that Oracle’s fortunes are now heavily tied to OpenAI,” said Russ Mould, investment director at AJ Bell. Reuters
Oracle plans to announce its third-quarter results after the U.S. market closes on March 10, with a conference call set for 4 p.m. Central Time. The latest round of layoffs is ratcheting up calls for more details on hiring, budgets, and which initiatives might now be on hold.
Oracle’s tightening in some divisions hasn’t slowed its AI rollout. “Advisor for Safety marks a significant step forward in safety management,” Mark Webster, senior vice president and general manager at Oracle, said in a March 5 statement announcing a new construction safety tool. Oracle
Oracle talks up speed and capacity to customers, but investors keep their eyes on the bill—and how quickly fresh deals start generating cash flow.
Simply cutting jobs won’t fix things if demand falters or borrowing gets pricier. Oracle is building out data centers, but those take a while to fill—and the company could end up with more capacity than it’s able to turn into revenue.
Oracle hasn’t shared details on staffing plans, and Bloomberg’s report stuck with “thousands” for its estimate, without pinning down a number. With results due Tuesday, investors are still in the dark on how much of that sharp rise in spending is already baked in.
