Oracle Corporation, founded by Larry Ellison, is undergoing its largest layoffs in history, eliminating up to 30,000 jobs, or 19% of its global workforce of 162,000. In India, approximately 10,000-12,000 positions are being cut. The company has increased its restructuring budget by $500 million to $2.1 billion for fiscal year 2026, primarily to cover severance costs. This drastic move is attributed to financial pressures stemming from Oracle's aggressive investments in artificial intelligence (AI) infrastructure, which have strained its liquidity.

Oracle's capital expenditure has skyrocketed from $6.9 billion in FY24 to a projected $50 billion in FY26, driven by the need for data centers to support AI workloads. The company's stock initially surged to an all-time high of $345.72 in September 2025 but has since fallen over 50% as concerns about the costs and risks associated with AI infrastructure have emerged. Despite a 22% increase in revenue to $17.19 billion in Q3 FY26, Oracle's margins are under pressure, particularly from AI deals with low gross margins.

Oracle's debt has ballooned to between $105–$124 billion, exacerbated by long-term commitments for data center leases totaling around $248 billion. The company's strategy heavily relies on a single customer, OpenAI, with which it has a $300 billion contract, raising concerns about its financial stability and future revenue generation.