Oracle plans more job cuts as it borrows heavily for AI infrastructure while trimming payroll. Uber also cut 10% of customer service staff, citing AI adoption. Both moves reflect the tension between big tech spending and cost discipline.
Oracle Corp. is preparing another wave of job cuts as it borrows heavily to fund AI infrastructure while trying to keep payroll costs in check, Business Insider reported, citing people familiar with the plans and an internal document.
The company's headcount fell by 21,000 employees, or 13%, during the fiscal year that ended May 31, 2026, according to a recent regulatory filing. That included layoffs, attrition, and other reductions. Oracle now employs roughly 141,000 people.
"The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce," Oracle said in its annual filing.
Managers were asked to identify employees who could be affected, with the company aiming to reduce its payroll by the start of the second quarter on September 1, the report said, citing a person directly familiar with the matter. Oracle has not publicly confirmed the planned cuts.
The layoff plan comes as Oracle spends heavily on data centers and AI chips. The company invested $55.7 billion in infrastructure during fiscal 2026, generating a cash outflow of $23.7 billion more than the company produced in the year. Oracle expects net capital expenditure to reach about $70 billion in the current fiscal year and plans to raise an additional $40 billion through debt and equity, including a previously announced $20 billion stock offering.
Severance and restructuring costs hit $1.84 billion in fiscal 2026, up from $374 million the prior year, according to the filing reported by Reuters in June. Oracle said the workforce reductions were driven by several factors: management changes, performance issues, strategic realignments, and acquisitions.
Uber Cuts 10% of Customer Service Staff
Separately, Uber Technologies Inc. eliminated 10% of jobs in its customer service division as part of a broader restructuring, Bloomberg reported. The company announced the cuts in its community operations division last month, saying the move was intended "to simplify operations, strengthen in-person collaboration, and continue to embrace AI," an Uber spokesperson said.
Employees who were working remotely in the division have also been asked to move to hub offices, in line with the company's return-to-office policy, the spokesperson added.
"Our organization has become too complex and siloed," Megha Yethadka, Uber's vice president of global community operations, said in a memo to the division. The department "has made some strides" in using AI, she said, "but to unlock this potential, we need an effective organization to layer AI on. We cannot scale frontier technology on top of fragmented processes."
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