American tech giant Oracle is planning mass layoffs across the company’s divisions as it focuses on a costly AI data center expansion effort.

Job cuts will affect thousands of workers across divisions and could be implemented as soon as this month, Bloomberg reported citing people familiar with the matter.

Two of the people Bloomberg spoke to said that the reductions will be primarily aimed at job categories that the company expects to need less of due to AI.

The reductions are expected to be wider-reaching than Oracle’s typical job cuts, the publication says.

It follows an announcement from the company that it would be reviewing some of the open job listings in its cloud division, putting a pause on or slowing down hiring, people with knowledge of the matter told Bloomberg.

Planning for job cuts is still active and could change, the people said.

As of May 31, 2025, Oracle employed approximately 162,000 people globally.

Oracle has undertaken a massive $30 billion AI expansion, which is almost three times Oracle's total cloud infrastructure revenue for the past year. Despite the revenue not expected to materialize until at least 2028, company shares jumped more than 6% following the news.

Job cuts are becoming increasingly prevalent in the tech sector. Earlier this month Amazon announced it had laid off another round of staff, now inside the robotics division powering more than a million warehouse robots worldwide. The job cuts reportedly affected at least 100 white-collar positions.

In general, the high up-front costs of AI and data centers required for training and running complex AI models have driven many companies to reduce their headcounts. Meta has announced plans to let go of 10% of employees who work in the company’s Reality Labs division, while Pinterest said it will cut under 15% of its workforce to dedicate more resources to its AI strategy.

Goldman Sachs economists estimated in February that AI was responsible for 5,000 to 10,000 monthly net job losses last year, warning that the accelerating adoption could push unemployment even higher this year.

In September, Oracle revealed it was planning its largest-ever restructuring, worth $1.6 billion, with more than 500 employees notified at the time that they would lose their jobs.

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