Employees of Austin-based Oracle Corp. might see their jobs cut soon as artificial intelligence spending continues to mount.
The potential cuts come after the company slashed thousands of jobs earlier this year
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Managers at the company have reportedly been asked to provide lists of employees who could be affected by the layoffs, according to reporting by Business Insider. Documents shared with the outlet show some teams could see cuts reaching double-digit percentages.
Oracle has not responded to requests for comment
Financial documents reveal the company cut its workforce by 13% this fiscal year, or about 21,000 jobs. Oracle has previously acknowledged that AI and AI-related spending have factored into its job cuts.
U.S. Rep. Greg Casar called out Oracle earlier this year, saying the federal government needs greater scrutiny of companies looking to replace workers with AI
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“Those 21,000 layoffs are not just a statistic, that is 21,000 people who are wondering how they will pay their rent, how they will pay their mortgage, how they will stay on their feet in this unstable job market,” the Austin lawmaker said at a news conference outside of Oracle’s headquarters
Jay Janner/Austin American-Statesman
The latest round of layoffs are expected in the next few weeks as Oracle enters a new financial quarter Sept. 1. The company is expected to report quarterly earnings sometime during the second week of the month
TECH LAYOFFS:Austin’s biggest tech employers are cutting thousands of jobs to embrace AI
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Oracle, like many tech companies, has been betting big on AI infrastructure, such as data centers.
Oracle spent more than $55.7 billion on infrastructure last fiscal year and recently raised more than $40 billion through debt as it expands that side of its business. That debt raise joined an earlier $50 billion fundraising effort disclosed in February. The company says its remaining performance obligation, which represents revenue under contract that has not yet been recognized, reached $638 billion as of May 31
When Oracle had its layoffs earlier this year, thousands of affected employees were notifiedjobs, including many in Austin, posted on social media shortly afterward saying they were blindsided by the news.
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Total cuts at Oracle’s headquarters in Austin are still unknown.
