Oracle is cutting thousands of jobs as the US technology company seeks to reassure investors that its bet on AI infrastructure will pay off.
The $420bn (£315bn) company, which is headquartered in Austin, Texas, started making employees redundant on Tuesday, with thousands of its 162,000-strong workforce expected to leave.
About 10,000 people have lost their jobs so far, the BBC reported, citing an unnamed employee at the company, which is chaired by Larry Ellison, the billionaire ally of Donald Trump. Ellison is worth $189bn and is the world’s sixth richest person, Forbes estimates.
Michael Shepherd, a senior manager at Oracle, who was not affected by the cuts, posted on the social media site LinkedIn that there had been a “significant reduction in force” at the business.
Shepherd said the decision had affected “senior engineers, architects, operations leaders, program managers, and technical specialists with deep expertise in cloud infrastructure, government and sovereign cloud environments, and enterprise-scale systems”.
That’s just what we need. More senior tech workers out of work in Austin. Thank god we now have a fresh supply!
“It’s here right now and definitely working and producing productivity and revenue, but also we need to cut costs so we can keep spending money on it. Hmmm? Why not use the revenue it’s generating to pay for it, well, you see, we’re just scailing so fast it’s not enough. Oh, why not fund it with credit? The banks won’t let us put up the nvidia chips as collateral to buy more nvidia chips anymore.”