Oracle started sending termination emails at 6 a.m. local time on Tuesday across the US, India, Canada, and Mexico. TD Cowen estimates between 20,000 and 30,000 people are being cut, roughly 18% of the company's 162,000 workforce, CNBC reported. That makes it the largest layoff in Oracle's history.

The reason is straightforward. Oracle committed to $156 billion in AI data center spending, took on $58 billion in new debt in just two months, and free cash flow went negative to the tune of minus $10 billion last quarter. ORCL is trading around $147, down 25% this year, worse than every other megacap.

Analysts say cutting that many people could free up $8 to $10 billion in cash flow. So Oracle is betting the entire company on AI infrastructure, and the people who built the old Oracle are paying for it.