Khaberni - The American company "Oracle," specializing in building databases, has announced plans to lay off up to 30,000 employees from its total workforce in the coming days.
This move coincides with a roughly 25% decrease in its stock value due to huge capital commitments to build artificial intelligence infrastructure, as the company is part of the American "Stargate" project to establish a group of data centers valued at $50 billion, according to Reuters.
"Oracle" is currently facing continuous pressure from investors to justify the size of debt and spending on artificial intelligence data centers that the company has undertaken, which was one of the reasons for the layoffs, according to the report.
It is expected that "Oracle" will lay off between 20,000 and 30,000 employees from its total workforce, which is up to 162,000 employees, according to the latest statistics in May, and this step will increase the company's free cash flow by approximately 8 to 10 billion dollars, according to the report.
According to the report, this wave of layoffs will help reduce the company's expenses, which makes it easier for them to transfer these expenses to the construction sector and invest in data centers without changing its plans.
The layoffs are not only limited to removing employees from their positions but also include the complete removal of job titles from the company’s administrative structure, affecting a number of positions such as software engineers and salespeople.
In related context, Michael Shepherd, one of the company's senior managers who was not affected by the layoffs, confirmed through his LinkedIn account that this wave of layoffs was not fundamentally based on employee performance or actions.
Reports indicate that a large number of posts have appeared on LinkedIn from disgruntled employees affected by the layoffs.
It is worth mentioning that "Oracle" is one of the major American tech companies, founded in 1977 by Bob Miner, Ed Oates, and Larry Ellison, who is considered one of the richest people in the world.
