Oracle Cuts Thousands of Jobs Amid 25% Stock Drop and Mounting Debt From AI Infrastructure Spending

Oracle is cutting thousands of jobs amid a 25% stock drop and mounting debt, as the tech giant bets big on AI infrastructure with plans to raise $50 billion and honor a $300 billion OpenAI deal, while analysts say slashing up to 30,000 employees could unlock $10 billion in free cash flow.

• Oracle is cutting thousands of jobs as the company faces a 25% stock price drop this year and growing investor pressure over rising debt and shrinking cash flow tied to massive AI infrastructure spending.
• Oracle is ramping up AI data center investments, having announced plans to raise $50 billion in debt and equity, while reporting $553 billion in remaining performance obligations driven largely by a deal with OpenAI worth over $300 billion.
• Analysts at TD Cowen suggest that cutting 20,000 to 30,000 employees could generate $8 billion to $10 billion in incremental free cash flow, as executives maintain that AI infrastructure demand continues to exceed supply.