Oracle Stock (ORCL) Jumps Today on Layoff News

Oracle stock climbed after the company announced layoffs. Employees across several units have been affected.

Oracle ORCL -1.28% ▼ stock was up on Tuesday after the cloud software company started laying off employees this morning. Employees of Oracle have taken to LinkedIn to post about the layoffs, which were made via emails that were sent to employees at 6 a.m. There was no prior communication about layoffs before this email, and those that received the email were told today is their last day working at the company. According to reports from affected employees, the Oracle layoffs spread across several units, including Revenue and Health Sciences, as well as SaaS and Virtual Operations Services. Insiders report that NetSuite, a subsidiary of Oracle, also laid off employees at its India Development Center. While the layoffs appear to have largely hit engineers and software developers, some management roles were also cut. Oracle said that the layoffs were connected to a reorganization at the company. This likely has to do with AI, as Oracle has worked to integrate AI into its workflow. AI is expensive, which means the company may have reduced its headcount to cut costs and make room for AI. Oracle stock was up 2.42% on Tuesday but was still down 27% year-to-date. The stock has also fallen 2.21% over the past 12 months. Oracle stock trading activity today was muted, as some 1.5 million shares changed hands, compared to a three-month average daily trading volume of about 26.3 million shares.