According to Bloomberg, investors are concerned how the technology giant will pay for the large data centre expansion needed to support customers, including OpenAI, xAI and Meta.

According to the report, the layoffs could affect multiple departments at Oracle and could begin as early as this month, citing people familiar with the situation.

However, some job cuts will target roles that the company believes may be reduced due to AI.

This comes as the company has traditionally been a smaller competitor in the cloud computing market, however, in the past year it has become a major platform in the space, as a result of its recent $300 billion deal with OpenAI.

The company also reportedly told employees it would review many open job listings in its cloud division, which could slow or pause hiring.

Last month, it was reported Oracle may slash up to 30,000 jobs to fund the expansion of its AI data centre build-outs, according to a research note by investment banker TD Cowen.

TD Cowen estimated that Oracle’s OpenAI deal could require $156 billion in capital spending, with layoffs potentially freeing up $8-10 billion in free cash flow.

However, Oracle follows the lead of many technology giants, including Telstra, Salesforce, Amazon, Meta and Ericsson  which have all recently made job cuts.