Oracle Corp. is preparing to cut thousands of jobs as the software giant grapples with soaring costs tied to its aggressive push into artificial intelligence infrastructure, people familiar with the matter tell Bloomberg.

The planned reductions would affect multiple divisions across the company and could begin as soon as this month.

Unlike Oracle’s typical rolling workforce adjustments, the cuts are expected to be broader in scope.

In a filing last September, Oracle disclosed plans for its largest-ever restructuring, estimating it could cost as much as $1.6 billion in the current fiscal year ending in May.

The layoffs come as Oracle pours billions into building out massive data centers designed to handle AI workloads for major customers such as OpenAI.

Led by Chairman Larry Ellison, the company has been investing heavily to expand its cloud-computing infrastructure and position itself as a stronger competitor to industry leaders Amazon and Microsoft.

Wall Street analysts expect the scale of that investment to pressure Oracle’s finances in the near term.

Projections compiled by Bloomberg show the company’s cloud unit spending on chips, infrastructure, and long-term leases could push Oracle’s cash flow into negative territory in the coming years, before the investments are expected to begin generating significant returns in 2030.

The financial strain from the AI buildout has weighed on investor sentiment. Oracle shares surged 61% in 2024 and gained another 20% in 2025 as investors initially cheered the company’s AI ambitions.

But as spending ballooned, the stock reversed course, falling about 54% from its September 2025 peak through Wednesday’s close.

Shares slipped a further 1.5% Thursday following reports of the potential layoffs.

The restructuring effort comes amid a broader wave of job cuts across the tech sector as companies race to fund costly AI initiatives.

Microsoft eliminated roughly 15,000 jobs last year while ramping up spending on AI software and data centers.

More recently, Block Inc. announced plans to cut nearly half of its workforce, with co-founder Jack Dorsey citing efficiency gains from artificial intelligence.

Oracle had about 162,000 employees worldwide as of May 2025.

The company declined to comment on the reported job cuts, and the plans could still change as internal discussions continue.

Oracle is scheduled to report its fiscal third-quarter earnings next week.