"Oracle has begun cutting thousands of jobs as it seeks to ease investor concerns about the scale of its AI data center spending, with layoffs starting on Tuesday."
"The company announced a huge increase in expenditure tied to a buildout of its AI capacity in 2025, including a $500 billion Stargate project with OpenAI and SoftBank."
"The mood at Oracle has shifted over the past few months, with its stock price down 26 percent this year, more than any other tech megacap."
"Some critics have accused these companies of AI washing, using the technology as a convenient justification for layoffs that were likely already planned."
Oracle has initiated significant layoffs, cutting thousands of jobs amid investor concerns regarding its AI data center spending. The company plans a $500 billion Stargate project with OpenAI and SoftBank, aimed for completion by the decade's end. Despite the layoffs, Oracle intends to continue its data center investments. The company's stock has dropped 26% this year, prompting a reassessment of its capital plans. Other tech giants are also laying off employees, often citing AI efficiencies as a reason for the cuts.
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