Oracle is planning to cut thousands of jobs as it grapples with cash flow challenges from its massive AI data center expansion, according to a Bloomberg report. The reductions will affect divisions across the company and may be implemented as soon as this month, with some targeting job categories the company expects will be less needed due to AI automation.

The planned cuts are expected to be broader than Oracle's typical rolling job reductions. This week, the company announced internally it would review many open positions in its cloud division, effectively slowing or freezing hiring. Chairman Larry Ellison has been leading a large-scale build-out of data centers to power AI workloads for customers including OpenAI, as Oracle transitions from its database software roots to expand its cloud computing unit.

Oracle had about 162,000 employees globally as of the end of May 2025. The company aims to compete with market leaders Amazon and Microsoft in the AI cloud space, but the aggressive expansion has created financial pressure requiring workforce reductions. Planning for these cuts remains active and could change as the company balances its AI ambitions with operational costs.