Oracle is set to lay off thousands of employees across various departments, with cuts potentially starting this month. The layoffs are part of a strategic shift as the company expands its data centers to support AI workloads for clients like OpenAI. Oracle, which had about 162,000 employees as of May 2025, is adjusting its workforce in response to reduced demand for certain roles due to AI advancements. The company is also reviewing open positions in its cloud division, effectively slowing or freezing hiring. Oracle plans to raise up to $50 billion this year through debt and equity offerings to fund its cloud business expansion, which is expected to result in negative cash flow until around 2030. Oracle's stock has fallen 54% since its peak in September 2025, and the company faces restructuring costs of up to $1.6 billion this fiscal year. Oracle will announce its third-quarter earnings on Tuesday.