The 10-year Treasury yield reached 5.04%, its highest level since 2007, driven by expectations of a Federal Reserve rate hike, elevated oil prices sustaining inflation concerns, and investor demands for compensation amid high government debt. Rising borrowing costs are affecting mortgages and long-term debt globally, with additional pressure from corporate debt issuance for AI infrastructure and an unwinding of the yen carry trade.
Oracle has begun another round of layoffs as it pursues costly AI and cloud expansion, building on a 13% workforce reduction in fiscal 2024. The company is managing rising debt while investing billions in infrastructure, with CEO Larry Ellison recently canceling a $7.5 billion share-sale plan.
Oracle has initiated another round of layoffs affecting multiple teams as the company accumulates billions in debt to finance AI infrastructure investments. The cuts follow a 13% workforce reduction in fiscal 2026, with the company now at approximately 141,000 employees. CEO Larry Ellison also canceled a planned stock sale of up to 50 million shares worth $7.5 billion.
Oracle reported strong Q1 fiscal 2027 results with 30% revenue growth to $19.3 billion, driven by a 121% surge in cloud infrastructure sales to $7.4 billion. The company booked over $30 billion in new AI cloud contracts as customer demand for AI services outpaces supply, though stock gains were trimmed amid concerns about its massive debt load for infrastructure expansion.