Oracle Cuts 546 Cloud Staff as Jupiter Debt Stress Mounts
Oracle reduced its Americas cloud infrastructure headcount by 7.6% while $18 billion in Project Jupiter debt traded at distressed levels.
Key points
- Oracle cut 546 employees from its Americas Cloud Infrastructure unit, a 7.6% reduction of the 7,185 staff in that division.
- $18 billion in debt tied to the $165 billion Project Jupiter data center is trading at 89-91 cents on the dollar.
- Oracle and Wipro partnered to integrate Argus pharmacovigilance software into Wipro’s AI suite, expanding cloud-based drug safety services.
Oracle Corp. executed a targeted reduction in its Americas Cloud Infrastructure division, removing 546 employees from a total workforce of 7,185 in that unit. This 7.6% cut, reported by Business Insider, affected software developers, engineers, and data center support staff, signaling a cost-containment measure within the company’s core cloud operations.
The workforce adjustment coincides with financial stress in Oracle’s largest infrastructure initiative. Approximately $18 billion in debt linked to the Project Jupiter data center campus in New Mexico has moved into distressed territory, trading at 89 to 91 cents on the dollar. The $165 billion facility, tied to the Stargate program, faces permitting delays and local opposition regarding power and water resources, complicating the financing structure for this massive expansion.
Wipro Integration Expands Life Sciences Reach
Oracle Life Sciences announced a partnership with Wipro Ltd. to integrate the Argus business process services into Wipro’s AI-powered Intelligence suite. This collaboration allows Wipro to offer cloud-based pharmacovigilance services, enabling customers to manage drug-safety data and automate regulatory workflows without maintaining on-premises systems. Wipro will maintain preconfigured Argus environments to accelerate customer onboarding, creating a new revenue channel for Oracle’s specialized software stack.
Technical Position Shows Neutral Momentum
Oracle shares closed at $149.39, a 0.56% gain, according to Benzinga Pro data. The stock trades 0.3% below its 20-day simple moving average of $149.86 but remains 9.8% below the 200-day average of $165.70. With the Relative Strength Index at 51.62, momentum is neutral, with technical resistance identified near $159.50 and support around $137. This positioning reflects a mixed outlook as investors balance the debt concerns against the company’s long-term growth trajectory.
Analyst Targets Remain Above Market Price
Despite the recent debt stress and layoffs, the consensus Buy rating persists with an average price target of $249.64. Recent actions included Freedom Broker cutting its target to $205 and Stifel lowering its estimate to $200, both maintaining Buy ratings in mid-September. These adjustments reflect a cautious approach to valuing Oracle’s aggressive capital expenditure plans, yet they remain significantly higher than the current market price, indicating that analysts still see substantial upside potential in the company’s infrastructure buildout.
