According to reports from international media outlets like CNBC, Oracle has commenced the process of informing its employees about a substantial reduction in workforce, with thousands of positions set to be eliminated. The software giant is grappling with a notable downturn in its stock value, primarily attributed to substantial capital outlays directed towards the establishment of artificial intelligence infrastructure. While Oracle's primary business operations are under threat from competitive pressures emanating from generative AI models, the company also confronts apprehensions from investors regarding its burgeoning debt levels and diminishing cash flow. As of May 2025, Oracle boasts a workforce of 162,000 individuals; however, its stock price has plummeted by 25% year-to-date, marking a more precipitous decline compared to its peers in the tech sector. To bolster its AI infrastructure expansion endeavors, Oracle is heavily reliant on funding sourced from the debt market, having unveiled plans in January to secure $50 billion through a combination of debt and equity financing.
