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Oracle layoffs 2026: Why is Larry Ellison-led firm laying off thousands of employees and how is OpenAI linked to it | Company Business News

Author: admin_zeelivenews

Published: 06-03-2026, 9:17 AM
Oracle layoffs 2026: Why is Larry Ellison-led firm laying off thousands of employees and how is OpenAI linked to it | Company Business News
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Oracle Corporation is preparing to implement a mass layoff that could affect thousands of employees across several divisions, according to a report by Bloomberg. The job cuts may begin as soon as this month.

The move is set to be a part of efforts to manage a cash crunch linked to Oracle’s massive spending on expanding AI data centres, a key area of investment as technology firms race to build infrastructure for AI services.

Which departments are at risk?

It is still unclear which specific departments will be affected by the mass layoffs at Oracle. More details on the nature of the job cuts are awaited.

However, two people aware of the matter told the news agency that some of the job cuts will be aimed at job categories that the company expects to become redundant due to artificial intelligence.

The company had about 162,000 employees globally as of the end of May 2025. Planning for the workforce reductions is still active and could change, the people told Bloomberg.

How is Sam Altman’s OpenAI linked to this?

Oracle, led by Chairman Larry Ellison, is embarking on a historic build-out of data centers aimed at powering AI workloads for major customers such as Sam Altman-led OpenAI, the news report said.

The software company is long known for its database products, but it has been shifting its strategy recent years to bulk up its cloud computing business with a strong focus on AI. Through these efforts, Oracle is intending to position itself as a viable competitor to market leaders such as Amazon and Microsoft.

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