Oracle has initiated another round of layoffs to help fund its significant investments in artificial intelligence infrastructure. Affected employees were notified via email this morning. This comes after reports last month indicated the company planned payroll reductions to offset billions borrowed for data centers and chip acquisition. Oracle is committing an estimated $90 billion to $95 billion in capital expenditures this year for AI expansion. To finance this growth, the company has accumulated substantial debt, leading to a lower credit rating compared to competitors. Consequently, around 21,000 employees, or 13% of its workforce, were laid off in the last fiscal year. The company also revised its restructuring plan costs upward, largely due to severance packages for departing employees. These layoffs highlight how AI is disrupting the labor market, prompting some tech firms to cut staff to free up capital for AI development. Other companies like Atlassian and Autodesk have also implemented significant layoffs, citing the need to invest more in AI initiatives. This trend shows a visible trade-off between investing in AI and maintaining current workforce levels.