American tech giant Oracle is considering laying off thousands of employees worldwide. The decision is related to rising data center maintenance costs and aggressive investments in artificial intelligence, which have led to financial liquidity problems. Information about the planned personnel cuts was reported by Bloomberg News and Reuters agencies, citing sources familiar with the situation. The company's board is expected to make a final decision in the coming weeks.
Mass layoffs at Oracle
Oracle is considering reducing its workforce by several thousand people on a global scale. The decision is a response to rising operational costs, particularly related to maintaining and expanding data centers. The layoffs are expected to affect various departments and regions.
Costs of AI investments
Oracle's aggressive investment strategy in the area of artificial intelligence and cloud computing has significantly burdened the company's finances. High expenditures on AI infrastructure, including graphics processors and computing power, have contributed to liquidity problems, forcing cost cuts.
Upcoming board decision
The final decision regarding the scope and scale of the layoffs is expected in the coming weeks. The plans are still under analysis and may change. The information has not been officially confirmed by an Oracle spokesperson.
American tech giant Oracle is considering mass layoffs that could affect several thousand employees worldwide. The decision is driven by the need to reduce costs in the face of rising data center infrastructure expenses and aggressive investments in artificial intelligence. The plans for personnel cuts, reported by Bloomberg News and Reuters, have not yet been officially announced by the company, and their final form is to be decided by the board in the coming weeks. Oracle, founded in 1977, is one of the world's largest providers of database software and enterprise management systems. In recent years, the company has heavily engaged in the race for dominance in cloud computing and artificial intelligence, competing with giants such as Amazon Web Services, Microsoft Azure, and Google Cloud. Sources indicate that the direct cause of the planned layoffs is financial liquidity problems triggered by high costs associated with expansion in the AI and cloud areas. Investments in expensive graphics processing units (GPUs) necessary for AI model development and maintaining extensive data center infrastructure have significantly burdened the company's budget. As a result, Oracle's management is seeking ways to reduce operational expenses, and workforce reduction is one of the tools under consideration. The layoffs are likely to affect employees from various departments and geographic regions, although the detailed scope is not yet known. „„Oracle estudia recortar miles de empleos por la falta de liquidez...”” — Source familiar with the plans Information about the planned layoffs first appeared on Bloomberg News and was subsequently repeated by Reuters and Spanish media. These reports have not been met with an official comment or confirmation from Oracle. In the context of the global economy, such a decision fits into a broader trend in the technology sector, where after a period of intensive hiring during the pandemic, many companies are making personnel adjustments. Oracle, like other corporations, must face economic challenges, investor pressure for profitability, and the costly technological race in the field of artificial intelligence.