The tech giant Oracle has announced the layoff of 21,000 employees as part of its restructuring plan. This move comes amidst significant investments to bolster its cloud-based offerings and support burgeoning AI workloads.

Oracle's annual filing for the fiscal year ending May 31st revealed that the reduction in workforce is partly due to the increasing adoption and deployment of AI technologies across its operations, which necessitates reorganisation and modernisation.

To fund these ambitious plans, Oracle is raising $45 billion to $50 billion, with half coming from debt. This substantial borrowing has alarmed investors, given that Oracle's total debt now exceeds $120 billion.

Notably, the company aims to attract major players like OpenAI and Nvidia, underscoring its commitment to AI-driven growth. In a twist of irony, bondholders have even sued Oracle, alleging that they were misled about the extent of required debt financing for AI infrastructure.