While sources suggest the cuts could affect thousands, the company has not officially confirmed the full scale. (Image: REUTERS/Mike Blake/File Photo)The spate of tech layoffs continues. On Tuesday, March 31, American tech giant Oracle, known for its database management systems, reportedly began cutting thousands of jobs. The layoffs come amid a sharp decline in the company’s stock this year, even as it ramps up investments in artificial intelligence (AI) infrastructure.The full scale of the layoffs remains unclear, as the company has yet to make an official announcement. Following the announcements, investor sentiment also took a hit as Oracle’s stock fell 25 per cent this year, a steeper drop than other major tech companies.Reportedly, the company is confronting multiple challenges in its attempt to keep up with the rapid rise of generative AI. Oracle’s core business, which is selling database software, seems to be under intense pressure, with investors worrying that newer AI models may reduce demand for conventional data systems.Employees began receiving notifications early on Tuesday. The latest round of layoffs seems to have impacted Oracle’s employees worldwide. “After careful consideration of Oracle’s current business needs, we have made the decision to eliminate your role as part of a broader organisational change…As a result, today is your last working day,” read copies of notifications to employees viewed by Business Insider.Also Read | Tech layoffs in January 2026: From Amazon to Pinterest, list of companies cutting jobsOn the other hand, the company is also dealing with rising concerns about its finances, especially the large amount of debt that it has been taking on to invest in AI infrastructure and a decline in cash flow. As of May 2025, the Larry Ellison-led company had around 162,000 employees.However, the company continues to focus on its core database business while expanding into cloud computing. Oracle has been reportedly spending massive amounts on building data centers that can support AI workloads. Despite all this, Oracle remains smaller than its biggest cloud rivals like Amazon, making it harder to compete at scale.The company has turned to borrowing to fund its massive investments. In January this year, the company announced plans to raise $50 billion through a mix of debt and equity. However, during its most recent earnings call, executives said there are currently no plans to raise additional debt in 2026.Story continues below this adAlso Read | Amazon to cut 16,000 corporate roles in its biggest layoffs since 2023Overall, Oracle is trying to balance the need to invest heavily in AI with growing concerns from investors about financial stability and long-term competitiveness.Last year in September, as per CNBC, the company reported a steep rise in its remaining performance obligations (RPO), which is a measure of future revenue from signed contracts that has not yet been recognised. Reportedly, the figure rose by 359 per cent to $455 billion, mostly owing to its deal with OpenAI that was valued at over $300 billion. Subsequently, the company also announced changes to its leadership last year, naming Mike Sicilia and Clay Magouyrk to succeed Safra Catz as CEO.Some analysts believe that cost-cutting could considerably improve the company’s finances. Regardless, Oracle’s leadership remains confident that its massive investments in AI infrastructure will deliver returns over time.Oracle’s latest announcement comes at a time when tech companies are aggressively reducing head count. Amazon said in January that it would be cutting about 16,000 corporate roles. Last year, Microsoft said it would slash about 15,000 roles, and only last week Meta said it was laying off hundreds of its employees. © IE Online Media Services Pvt LtdTags:Oracle