Oracle slashes jobs as AI ambitions pile on debt

Oracle Corp. ( ORCL , Financials ), the enterprise software and cloud computing major , has begun another wave of layoffs amid its AI expansion that increases the stakes on costs and borrowing.The new cuts began on Monday, Business Insider said, citing affected staff and an internal email. Some teams had been gearing up for double-digit percentage cuts.The cuts are part of a much wider workforce reset. Oracle's headcount declined by 21,000, or 13 percent, in the fiscal year ending May 31.The corporation had roughly 141,000 workers before the latest round. The timing is important since Oracle is pouring money into the infrastructure needed for its developing AI and cloud business.That expansion has needed billions of dollars in fresh funding and made salaries and other operating expenditures increasingly crucial as management strives to combine growth with a rising debt load. Yet another wrinkle for investors:Larry Ellison recently abandoned a trading strategy that would have allowed him to sell up to 50 million shares of Oracle, valued at around $7.5 billion. There were no shares sold under the plan.Why Oracle pulled the plug is unclear. Investors will be monitoring to see if Oracle can sustain its AI buildout without letting debt growth and cost cutting become a greater part of the story.