Oracle started cutting thousands of jobs on Tuesday, CNBC reported, as the cloud infrastructure company ramps up investment in building AI infrastructure.

The layoffs have reportedly affected around 10,000 people, according to the BBC, citing an Oracle employee who claimed to have observed a drop in the number of active staff on the company's internal messaging system.

Oracle had 162,000 employees as of May 2025, according to its latest filing to the US Securities and Exchange Commission. The company's core business is in providing data services and software for corporate clients and has lost 25% of its stock price this year.

The job cuts come as Oracle considerably increases investment in AI infrastructure. The company plans to spend at least $50 billion this year and raise another $50 billion in debt to meet future AI development demands, according to the BBC.

"Demand for AI infrastructure, both GPU and CPU, continues to exceed supply," Clay Magouyrk, Oracle's CEO, said on an earnings call on March 10. "This is directly visible in our $553 billion remaining performance obligations."

Since the start of 2026, multiple US tech companies have been reported to be planning to scale back their workforce while doubling down on AI investments. In March, Reuters reported that social media giant Meta planned to layoff 20% of its 79,000-strong workforce. The company has already laid off 700 employees as of March 25, according to the New York Times.

The fintech company Block laid off 40% of its employees in February, with the company's CEO, Jack Dorsey, attributing the downsizing to the use of "intelligence tools."

Amazon also slashed 16,000 of its corporate workforce in January, completing a plan of cutting 30,000 jobs started in October last year. This round of downsizing accounts for 10% of Amazon's corporate employees and became the most significant downsizing in the company's history.

(With inputs from agencies)