The tech giant Oracle made significant job cuts on Tuesday, according to senior employees posting online, as it makes big investments in artificial intelligence (AI).

Michael Shepard, a senior manager, was not affected by the job cuts but wrote on LinkedIn on Tuesday that senior engineers, architects, operations leaders, program managers, and technical specialists had been let go. He clarified that the cuts were not performance-based, a statement Oracle has yet to officially comment on.

Oracle has been utilizing internal AI tools, which executives assert allows fewer employees to accomplish more work. Mike Silicia, Oracle's co-chief executive, previously stated that the use of AI coding tools is enabling smaller engineering teams to deliver more complete solutions for customers swiftly.

As one of the largest tech companies globally, Oracle offers software and cloud computing infrastructure to businesses. Co-founder Larry Ellison is among the wealthiest individuals worldwide, serving as chairman and chief technology officer of the company.

Reports suggest approximately 10,000 individuals have lost their jobs due to the layoffs, with one employee citing a reduction in active users on Oracle's internal messaging platform Slack. Several affected employees took to LinkedIn to share their experiences of being informed of their layoffs via early morning emails, receiving one month of severance pay. Some employees revealed that their positions were cut as part of a broad consolidation initiative.

This move aligns with Oracle's heavily focused investment strategy on AI, with an allocation of at least $50 billion for infrastructure this year alone. The company is also involved in the Stargate initiative, collaborating with other tech entities to bolster data center capacity in anticipation of increased AI processing demands.