Oracle’s Massive AI Spending Spree Didn’t Save 21,000 Jobs

Oracle cut 21,000 employees (13% of workforce) in fiscal 2026 despite massive AI infrastructure investments and a record $638 billion contract backlog. The company spent $55.7 billion on capital expenditures, pushing free cash flow to negative $23.7 billion. Management plans to raise $40 billion more in debt and equity, using workforce reductions to free cash for GPU purchases and data center construction.