Oracle has laid off 21,000 employees in one year – The cost of technology “downsizing” in the AI era
- Oracle has cut approximately 21,000 jobs over the past year, representing almost 13% of its total workforce (dropping from 162,000 to 141,000 employees). The company's share price has fallen by more than 10% year-to-date, with an additional decline of about 1% on Tuesday.
- The company stated that the direct adoption of AI technology has led to and may continue to reduce its workforce. To address this, it has paid $1.8 billion in restructuring expenses (including severance and departure-related costs), a significant jump from $374 million last year. Oracle responded that, as its cloud and AI businesses grow, it will continuously adjust its development teams to align with talent requirements.
- Previously, Oracle raised substantial debt to invest in AI infrastructure and announced a $50 billion fundraising in January. However, its free cash flow for the previous fiscal year was negative $23.7 billion, and capital expenditure surged by 162% to $55.7 billion. The layoffs also reflect an industry trend: tech giants like Meta and Microsoft are expected to spend a total of $700 billion on capital expenditure this year. Meta cut 8,000 jobs, while Microsoft offered buyout options. By 2025, AI will have caused over 50,000 job losses across the United States.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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