World's Richest Person to Lay Off Thousands of Employees, Here's Why

Jakarta, CNBC Indonesia - Software giant Oracle is reportedly set to dismiss thousands of employees due to developments in artificial intelligence technology. For context, Oracle is owned by Larry Ellison, a close associate of US President Donald Trump, with a net worth of US$188.7 billion (Rp3,200 trillion). Ellison ranks as the sixth-richest person in the world, according to Forbes records.

CNBC International reported Oracle’s layoff plans based on information from two sources. The company has not yet officially announced the staff reductions.

Oracle declined to comment on the reports. There is no specific information on the number of employees affected by the layoffs, while data from May 2025 indicates the company employs 162,000 people.

Oracle is one of the US tech giants competing in the AI race alongside other major companies. The firm has increased its capital expenditure to build data centre infrastructure capable of handling AI workloads.

However, Oracle is relying on debt to finance its infrastructure development. This has also led investors to pressure the company. Investors are questioning the ballooning debt for AI investments, as well as the reportedly thinning cash flow.

CNBC International noted a plan to raise funds through debt and equity in January for US$50 billion (Rp848.5 trillion). Executives have assured there are no further plans to raise debt this year.

They also believe these AI investments will yield results over time. A similar sentiment was expressed by Clay Magouyrk, who replaced Safra Catz as co-CEO alongside Mike Sicilia.

“Demand for AI infrastructure, both GPUs and CPUs, exceeds supply. This is evident from our remaining performance obligations of US$553 billion (Rp9,300 trillion),” he explained earlier this month.