Oracle to cut 21,000 jobs amid AI expansion

The announcement comes as the technology company reported its largest-ever quarterly results and revealed a contracted backlog that now exceeds its market value.

Oracle is also preparing to raise up to $50 billion in new capital to fund AI infrastructure projects. According to estimates, more than half of the company's contracted backlog is linked to commitments involving OpenAI.

The restructuring reflects Oracle's strategy of shifting resources toward AI-focused cloud services and large-scale data center investments. The company has positioned itself as a key provider of infrastructure for growing demand in artificial intelligence, competing with major cloud providers including Microsoft, Amazon Web Services and Google Cloud.

Analysts note that Oracle's record backlog provides significant long-term revenue visibility, supported by contracts across sectors including government, healthcare and hospitality.

At the same time, the company's growing reliance on a limited number of major AI customers has raised concerns about concentration risk. Investors are expected to closely monitor how efficiently Oracle converts its backlog into revenue while managing the costs of its expanding AI infrastructure network.

The planned workforce reduction is also seen as an effort to align operating expenses with the company's evolving business model, which increasingly depends on long-term AI contracts and capital-intensive cloud infrastructure.

Oracle shares have faced recent pressure, though the stock remains significantly higher than it was three and five years ago, reflecting investor optimism about the company's long-term AI strategy.

Earlier, Qazinform News Agency reported that the Ministry of Artificial Intelligence and Digital Development of Kazakhstan and Oracle signed a memorandum of understanding during the C5+1 Summit in Washington in November 2025 to strengthen cooperation in artificial intelligence, high-performance computing and cloud technologies.