Oracle Reduces Cloud Division Jobs Amid AI Infrastructure Spending Surge

Oracle is cutting jobs in its cloud division amid heavy spending on AI infrastructure. Over 150 jobs were cut in the Seattle area, and the full scope of reductions could not be determined. This move follows similar cost-cutting measures taken by tech giants such as Microsoft, Amazon, and Meta. Oracle's stock is near an all-time high, but the company faces significant expenses to build out server farms to meet demand.

Title: Oracle Cuts Jobs in Cloud Division Amid AI Spending

Oracle Corp. has announced job cuts in its cloud unit, following a trend of cost control measures among tech giants amid heavy spending on artificial intelligence (AI) infrastructure. The reductions, reported by industry news publication DatacenterDynamics, were confirmed by sources familiar with the matter. Over 150 jobs were eliminated in the Seattle area, which is traditionally the hub for Oracle’s cloud unit [2].

The cuts come as Oracle seeks to manage expenses, particularly in the face of surging AI costs. The company is investing heavily in AI infrastructure, as seen in its recent deal with OpenAI for about 4.5 gigawatts of data center power in the US [1]. Despite the stock being near an all-time high, driven by momentum in the cloud unit, Oracle faces significant expenses to build out increasingly large server farms to meet demand. The company's free cash flow was negative in the fiscal year that ended in May.

Oracle’s spokesperson did not respond to multiple requests for comment. The full scope of reductions could not be determined. However, the company has previously stated that it periodically makes changes to its workforce due to strategy changes, reorganizations, or performance issues [1]. These restructurings can result in increased restructuring costs and temporarily reduced productivity while employees adjust to the changes.

This move by Oracle follows similar cost-cutting measures taken by other tech giants such as Microsoft, Amazon, and Meta. Microsoft, for instance, has cut around 15,000 roles this year, while Amazon and Meta have also reduced their workforce [2].

References
[1] https://www.bloomberg.com/news/articles/2025-08-13/oracle-layoffs-hit-cloud-unit-oci
[2] https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/oracle-cuts-cloud-division-jobs-amid-surge-ai-spending