Oracle’s 21,000 layoffs help drive its debt-fueled AI investments

Oracle laid off 21,000 workers, a 12.9 percent reduction in its workforce, citing the adoption of AI technologies across its operations. The company is simultaneously investing billions in data center infrastructure to support AI workloads, with plans to raise $45 billion to $50 billion in 2026, about half of which will come through debt. This strategy has raised investor concerns because Oracle already carries over $120 billion in debt and relies heavily on unprofitable customers like OpenAI. According to outplacement data, AI has become the leading reason companies cite for job cuts, with technology being the industry most frequently citing AI as justification for layoffs.