Oracle cuts 21,000 jobs amid cash squeeze from AI expansion

Oracle just laid off roughly 21,000 employees, about 13% of its entire global workforce, leaving the company with 141,000 staff as of its latest fiscal year. The reason, stated plainly in Oracle’s own SEC 10-K filing: artificial intelligence deployment and a sweeping restructuring designed to funnel more money into data centers and compute infrastructure. The price tag for showing those workers the door? A cool $1.84 billion in severance costs. Oracle is spending nearly $2 billion just to shrink itself so it can spend even more on chips, servers, and the physical plumbing of the AI economy. The AI arms race gets expensive The big four, Alphabet, Microsoft, Amazon, and Meta, are projected to collectively pour between $600 billion and $650 billion into AI-related capital expenditures during 2026. That number has ballooned from previous years, and every dollar spent on GPUs and cooling systems is a dollar not going to headcount. Oracle has reportedly secured a $300 billion contract with OpenAI for AI computing capacity, a deal that would make it one of the most critical infrastructure providers in the generative AI stack. What this means beyond Silicon Valley Oracle’s filing explicitl...