American tech giant Oracle is preparing to cut thousands of jobs in the face of a growing financial liquidity crisis. The company's problems stem from record spending on artificial intelligence infrastructure and rapidly rising data center maintenance costs. This decision aims to stabilize the company's balance sheet, which has pursued aggressive expansion in the AI sector at the expense of current capital reserves.

Thousands of Jobs to Be Cut

The company plans massive layoffs to balance a budget strained by investments.

Financial Liquidity Crisis

Aggressive spending on data centers and AI chips has led to a shortage of operational cash.

Rising Infrastructure Costs

Maintaining modern data centers generates significantly higher costs than assumed.

Technology conglomerate Oracle is considering massive layoffs that could affect several thousand employees worldwide. The main reason for this drastic decision is a sharp decline in financial liquidity, caused by enormous investment outlays in the development of artificial intelligence. In its drive to capture a dominant position in the cloud market, the company invested billions of dollars in expanding dedicated data centers, significantly straining its operational budget. Market analysts indicate that Oracle has fallen victim to its own "leap forward" strategy. Although orders for AI services are growing dynamically, the costs of building and maintaining modern computing infrastructure have proven higher than initial assumptions. Increased demand for electricity and the need to purchase the latest graphics processing units have led to a situation where current revenues do not cover the scale of capital expenditures. The company's management deemed workforce cost optimization a necessary step to maintain the pace of innovation without jeopardizing long-term stability. In 2022, Oracle finalized the acquisition of Cerner for $28.3 billion, which was the largest transaction in the company's history and significantly impacted its debt level just before the AI boom erupted.Despite the planned layoffs, the company does not intend to withdraw from the AI sector. On the contrary, savings obtained from reducing jobs in traditional software and services departments are to be redirected towards further development of next-generation cloud solutions. Oracle's situation reflects a broader trend in Silicon Valley, where tech giants must make painful choices between maintaining current employment levels and funding capital-intensive future technologies. Investors are closely monitoring these moves, assessing whether radical cuts will be enough to calm financial markets. „Oracle Plans Thousands of Job Cuts in Face of AI Cash Crunch” — Bloomberg News