Oracle layoffs: 30,000 jobs cuts to be completed by June 15 despite booming cloud, AI growth and strong earnings

Oracle Corp has entered the final phase of its largest-ever workforce reduction, with nearly 30,000 employees—about 18% of its global workforce—scheduled to depart between June 1 and June 15. Despite the layoffs, the company reported strong financial performance in its third-quarter fiscal 2026 earnings, driven by surging demand for cloud and AI services. Revenue rose 22% year-on-year to $17.2 billion, with cloud revenue jumping 44% to $8.9 billion. Oracle’s AI business saw explosive growth, with Oracle Cloud Infrastructure’s AI segment expanding 243% and multicloud database revenue soaring 531%. GAAP net income reached $3.7 billion for the quarter, underscoring robust financial health. The layoffs reflect Oracle’s strategic shift toward AI and cloud infrastructure, with the company allocating nearly $50 billion in capital expenditures for fiscal 2026 to expand AI data centers and cloud capabilities. Oracle is also a key partner in Stargate, a major AI infrastructure venture backed by OpenAI and SoftBank. Executives have stated the cuts are necessary to reallocate resources toward high-growth AI businesses amid rising demand for computing capacity. Oracle’s remaining performance obligations—contractual future revenue—climbed 325% year-on-year to $553 billion, signaling strong long-term demand for AI infrastructure. However, affected employees have faced challenges, particularly with severance packages that include tenure-based payouts capped at 26 weeks and the forfeiture of unvested stock awards. Some laid-off workers reportedly petitioned for improved compensation terms, but Oracle declined to adjust the packages.