Workers in California and other locations received emails informing them their roles had been eliminated as part of a broader organizational change. Analysts say the cuts reflect Oracle’s shift away from traditional on‑premise software toward cloud services and AI data centers, rather than AI alone directly replacing jobs. The move comes as Oracle accelerates investment in data centers to meet surging demand for computing capacity tied to artificial intelligence. In February, the company said it planned to raise between $45 billion and $50 billion in 2026 through debt and equity to expand its cloud infrastructure, including capacity for customers such as OpenAI. Oracle has also deepened its role as a supplier of cloud computing power to OpenAI under a massive multi‑year contract.