Oracle Corp. (NYSE:ORCL) shares are surging Wednesday morning. The gains follow news that the tech giant slashed roughly 18% of its global workforce.
Employees reportedly received termination emails at 6 a.m. Tuesday from “Oracle Leadership.” Access to systems was cut immediately without prior warning.
Funding The AI Build-Out
The move signals a pivot toward infrastructure. TD Cowen estimates the cuts will free up $8 billion to $10 billion in cash flow. This capital will fund a projected $156 billion AI data center build-out. Oracle recently reported a 95% jump in net income to $6.13 billion.
Managing Massive Backlogs
Oracle faces a staggering $553 billion in remaining performance obligations. This backlog rose 325% year-over-year. A $300 billion deal with OpenAI drove much of this growth. …
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