Thirty thousand people woke up employed this morning and went to bed without a job.
Not because Oracle is failing or revenue collapsed, but rather it needs billions of dollars it doesn’t have.This is not a small trim of underperformers, TD Cowen estimates 18% of Oracle's entire global workforce was eliminated in a single coordinated wave.The cuts hit the US, India, Canada, and Mexico simultaneously, rolling across time zones like a controlled demolition.Oracle is not going broke, the company posted strong earnings just days ago and its stock moved higher on the news of the cuts.The money freed up by these 30,000 paychecks estimated at $8 to $10 billion goes directly into building AI data centers.Oracle owes $108 billion in debt and committed to spending $156 billion on AI infrastructure and the math did not work with 162,000 employees on payroll.US banks started pulling back from financing Oracle's data center projects and lenders roughly doubled the interest rates they charge Oracle since last September.When the banks walked away, Oracle looked elsewhere for the money and it looked at its own payroll.This is the part that should terrify every white-collar worker in tech. The layoffs were not triggered by failure, they were triggered by a capital spending decision made in a boardroom.Oracle disclosed a $2.1 billion restructuring plan in its SEC filing this quarter and recorded nearly $1 billion of it in just nine months.The workers received a DocuSign link telling them to sign their termination papers quickly or forfeit any chance at severance.Sign fast, take the money, and release your legal claims. That is the deal offered on the last working day, with no time to think.The only question left is which company sends the next 6 a.m. email and to how many people.Source: StockMarket.News
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