Another round of layoffs has hit the tech industry, this time at SaaS giant Oracle Corporation (NYSE: ORCL).
The job cuts reportedly came out of the blue for most affected employees, with many receiving an early-morning email announcing their job loss just hours before they were scheduled to go into the office.
Here’s what you need to know.
What’s happened?
On early Tuesday morning, Oracle employees around the world began reporting on social media that they had received an email from the company informing them that their employment had been terminated.
According to these reports, the emails began arriving in employees’ inboxes at around 6 a.m. local time.
It was not immediately clear how many employees were laid off and which divisions and locals were most affected. When reached by Fast Company, an Oracle spokesperson declined to comment.
What Oracle has told affected employees
Oracel hasn’t publicly stated a reason for this specific round of layoffs, and in the emails it sent to employees, the company didn’t get into specifics.
As for those emails, there appear to be at least two different versions that were sent out to affected employees, though both effective convey the same information.
In one version of the email seen by Business Insider, it states, “After careful consideration of Oracle’s current business needs, we have made the decision to eliminate your role as part of a broader organizational change. As a result, today is your last working day.”
A number of Reddit users have posted a version of the email with different wording.
As of Oracle’s most recent 10-K filing from May 2025, the company had around 162,000 employees.
What is the reason for the layoffs?
While Oracle did not specify the reasons for the layoffs in those emails, the company has been under significant pressure recently to cut costs to fund its large AI data center buildout, much of which is part of its partnership with OpenAI and the $500 billion Stargate AI infrastructure project.
Oracle is also trying to pivot from being mainly a software-as-a-service (SaaS) company to becoming a cloud computing provider. The company is doing this to hedge against the possibility that artificial intelligence platforms may soon significantly impact legacy SaaS business models.
By pivoting, Oracle has a chance to grow with the AI era rather than be devoured by it. However, that pivot requires massive capital, and the quickest way for a company to free up capital is usually, unfortunately, by laying off workers.
How have investors reacted to the layoffs?
Wall Street has reacted to the Oracle layoffs as it usually does: by boosting the company’s stock price.
As of this writing, shares in Oracle Corporation (NYSE: ORCL) are currently up around 2.8% to $142.69.
However, that stock price bump does little to counteract massive declines over the past six months. Investors have increasingly worried about the company’s capital expenditures related to its AI data center buildout and the potential impact that AI chatbots will have on its business model.
Since early October, ORCL shares have been cut nearly in half, falling from around $289 per share to around $142 per share today.