Oracle Stock Under Pressure as the Company Cuts 21,000 Jobs
Global tech giant Oracle announced it would lay off 21,000 employees in an effort to reshape its business empire around AI. The tech titan had 162,000 full-time employees last year and is now down to 141,000. The job cut is around 13% of the entire workforce, as they’re spending billions on building their AI infrastructure and data centers. Many employees received an e-mail at 6 AM confirming that their role in the company is made redundant. Oracle stock (NYSE: ORCL) is now under pressure over the workforce cuts, as restructuring efforts can risk the revenue of this fiscal year.Also Read: Micron Hits All-Time High Despite Tech Stock Dip And Iran ScareOracle Stock in Turbulent Times, as Tech Titans Initiate Major Job Cuts Over AI SpendingSource: FinboldNot just Oracle, but other tech giants like Amazon and META have also cut jobs, as they invest heavily in AI. More than 100,000 tech workers have been asked to leave in a year, according to data from employment tracking firms. To keep it precise, 97 tech companies have laid off more than 121,462 employees in 2026. Oracle stock is sinking after the news of the layoffs broke out and slumped 5% on Monday. ORCL fell to the $175 range, and this added to the troubled waters of an already 20% downside year-to-date.The main catalyst for the layoff is that Oracle will spend $1.84 billion in severance payments for 2026. This eats up a significant amount of an already strained capex for AI, touching $95 billion. The company provides data center support for major AI clients such as OpenAI and META, among others. Oracle will now have to reallocate resources, making it a bigger effort than spending time on growth this year. The scale of the cut has drawn major attention on Wall Street as profitability now comes into question. Oracle’s move comes with a steep price tag that can affect its stock price and revenue model in 2026.
All Comments0LatestHot