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Oracle cuts 21k jobs due to losing its AI strategy battle. This is its largest round of layoffs in recent times.
Wait, didn’t the AI strategy fail🤔
Doesn’t that mean they didn’t use AI well, so why are they still laying off🤡
But Oracle’s cloud and AI business is actually surging: cloud revenue +39%, AI orders in hand with RPO reaching $638 billion, up 363% year over year, and it also signed a $300 billion+ deal with OpenAI.
But building data centers has crushed free cash flow to -$23.7 billion, and debt has broken past $120 billion, so they’re borrowing money while cutting staff.
If you use AI well, you get laid off.
If you don’t use AI well, you also get laid off.