Oracle Rumored to Cut 10% of Workforce for More “AI-Infra” – Moby
As Larry Ellison throws billions at Warner Bros. to make sure his baby boy can finally close the $110 billion dollar Paramount deal, Larry is also rumored to be on the verge of cutting thousands of jobs from his company, Oracle.
ORCL is up almost 2.5% on the news that leaked late Thursday.
The current wave of rumors comes from a Bloomberg-sourced report saying Oracle, which again is about to throw $110 billion ($31 per share in cash) at Warner Bros. to make sure his son, David Ellison, can see his name in shimmering lights, is about to cut 10% of Oracle’s 160,000 person team.
According to Investment bank TD Cowen, that could amount to a cut of anywhere from 20,000 to 30,000 jobs.
These rumors claim that Oracle is planning to cut 10% of its workforce to “free up” about $8 to $10 billion in cash for future AI infrastructure expansions, something Oracle is already extremely deep in with other companies like Nvidia, OpenAI, and the U.S. Government.
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Only a few months ago, in December 2025, Oracle announced a $12 billion, single-quarter CapEx figure when it released its fiscal Q2 2026 earnings results to build data centers serving AI customers (OpenAI, etc.). Futurum reported that it is now expected that roughly $50 billion in cap exp will be made in fiscal 2026 to build even more GPUs and data center capacity.
If the job cuts do happen (they will), it will free up some cash, but not nearly as much as they plan for the rest of the year, which makes us wonder if they are trying to thread a few needles to make sure Ellison Jr. has the cash for Paramount. That or Larry just wants the stock to go up so he can sell it off to free up more cash.
Another curveball for the Ellisons may ironically be coming from President Trump. The Financial Times reported this week that the war in the Middle East are threatening the Gulf’s massive push into AI infrastructure—potentially putting billions of dollars in projects at risk. Oracle sits smack dab in the middle of it all.
The company has been aggressively expanding its Oracle Cloud Infrastructure footprint across the region, committing $14 billion to Saudi Arabia, launching multiple OCI cloud regions in Riyadh and Jeddah, and expanding cloud and AI capacity in Abu Dhabi as Gulf states position themselves as global hubs for AI computing and data centers.
That may all come to a screeching halt if this war continues, which, as far as President Trump has been saying by way of the media and Truth Social, it is.
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