Oracle Plans New Round of Layoffs in August as AI Infrastructure Spending Hits $55.7 Billion

Oracle planning new round of layoffs in August 2026

Cuts could reach double-digit percentages on some teams, with Oracle aiming to reduce payroll before September 1 Oracle $ORCL is planning a new round of job cuts this month as the company borrows tens of billions of dollars to fund its AI data center buildout, according to Business Insider, which cited people familiar with the plans and an internal document. Some teams could see cuts in the double digits, Business Insider reported. The company has asked managers to identify which employees would be affected, targeting a reduction in payroll ahead of the September 1 start of its second fiscal quarter. Oracle declined to comment. The planned cuts follow a significant workforce reduction already recorded in the company's most recent fiscal year. Oracle's workforce shrank by 21,000 people, a 13% decline, over the fiscal year ending May 31, bringing its total headcount to approximately 141,000. The company attributed the headcount decline in part to the adoption and deployment of AI technologies, and recorded $1.8 billion in restructuring charges for the year under what it designated its 2026 Restructuring Plan, with total anticipated charges of as much as $2.1 billion. The new layoffs underscore the financial tradeoffs of Oracle's AI infrastructure push. Oracle's capital expenditure bill for fiscal 2026 totaled $55.7 billion, a jump from $21.2 billion the year before, leaving it with a cash outflow of $23.7 billion more than it generated. To cover those costs, Oracle tapped debt markets for $43 billion and raised an additional $5 billion by selling stock in fiscal 2026, and it anticipates securing approximately $40 billion more through a combination of borrowing and equity issuance in the year ahead. Oracle has pointed to rising demand as justification for the spending. Oracle posted 17% revenue growth in fiscal 2026, and its cloud infrastructure segment expanded by 77%, driven by surging appetite for the computing capacity that AI workloads require. Oracle stock is down nearly 26% this year. Alongside wider unease on Wall Street about soaring capital spending in the industry, the stock has also been caught up in a sector-wide retreat driven by anxiety that AI will erode demand for conventional software products. Oracle Chairman Larry Ellison addressed those concerns on an earnings call in March, telling analysts he believes that threat will affect other companies but not Oracle.

Oracle plans fresh layoffs as AI spending piles up billions in debt: Report

Oracle is reportedly planning another round of job cuts. This move aims to reduce payroll while investing heavily in AI infrastructure. The company's employee count already fell significantly last fiscal year. Oracle spent billions on data centers and computing capacity for AI demand. Oracle is reportedly planning another round of job cuts as the cloud giant looks to reduce payroll while spending billions of dollars to build AI infrastructure. The potential layoffs could affect double-digit percentages of employees on some teams, Business Insider reported, citing people familiar with the plans and an internal document reviewed by the publication. Also Read: 120,000 tech jobs cut in 2026 as AI drives Big Tech's reset; India's IT could be next Oracle has asked managers to submit lists of employees who could be affected, with the company aiming to reduce its payroll by the start of its second quarter on September 1, according to a person with direct knowledge of the plans cited by Business Insider. The reported layoffs would come just months after Oracle significantly reduced its workforce. The company's employee count fell by 21,000, or 13%, during the fiscal year ended May 31, 2026, including through layoffs, according to a recent regulatory filing. Oracle currently has around 141,000 employees. Oracle is spending heavily to build data centres and acquire the chips and computing capacity needed to meet surging demand for AI services. At the same time, the company is looking for ways to reduce costs as it balances massive capital expenditure with investor expectations around profitability. Also Read: Oracle, Quantinuum partner to bring quantum computing to cloud Oracle spent $55.7 billion on infrastructure, including new data centres, during fiscal 2026, according to Business Insider. The company's cash spending exceeded its cash inflows by $23.7 billion during the year. To fund its expansion, Oracle raised $43 billion through debt during fiscal 2026, along with another $5 billion through stock sales. The company expects to raise another $40 billion through a combination of debt and equity during the current fiscal year, according to the report. The spending reflects Oracle's aggressive push into AI infrastructure as demand from companies developing and running artificial intelligence models drives demand for cloud computing capacity.

Oracle Plans Fresh Layoffs as AI Infrastructure Spending Reaches $55.7B

Oracle recorded $1.84 billion in restructuring and related expenses during fiscal 2026. Those costs included employee severance and other exit expenses. The comparable figure reached $374 million one year earlier, showing a large increase in restructuring charges. Additionally, Oracle expanded its data centers and computing capacity as demand for artificial intelligence services grew. reached $55.7 billion in fiscal 2026. The company also reported negative free cash flow of $23.7 billion for the year. Oracle raised $43 billion through debt and another $5 billion through stock sales during fiscal 2026. It expects to raise about $40 billion through debt and equity in the current fiscal year. These funds support its cloud infrastructure expansion and related equipment purchases. Oracle expects capital expenditures of about $70 billion in fiscal 2027, according to its current plans. Demand will guide the spending level. At the same time, Oracle's business recorded faster growth. Total revenue rose 17% to $67.4 billion in fiscal 2026. Cloud infrastructure revenue increased 77% to $18.1 billion, while total cloud revenue reached $34 billion. Oracle also ended the year with $638 billion in remaining performance obligations. Many large AI contracts included prepaid equipment or hardware supplied by customers. Oracle valued those prepaid and customer-provided hardware commitments at $75 billion. The reported layoffs show how Oracle is reviewing recurring expenses during this investment cycle. Still, the company has not directly linked every planned position cut to automation. Oracle has also not confirmed the reported August workforce action or provided a specific employee total.

Oracle to slash more jobs to fund AI plans with 'double digit' percentage cuts on some teams: report

Another wave of layoffs is looming for shell-shocked Oracle employees as the company prepares its second round of cuts this year while pouring billions into AI infrastructure, according to a report. Some teams could face double-digit percentage job cuts, according to Business Insider. A source with direct knowledge told the news outlet that managers have been asked to submit lists of impacted employees, with the goal of trimming payroll before Q2 begins on Sept. 1. While the job cuts continue, Oracle is doubling down its AI investment. Oracle spent $55.7 billion on data centers in fiscal 2026 -- a 163% increase from $21.2 billion in fiscal 2025. Oracle, helmed by CEO Larry Ellison, is looking to cut employee costs as it grapples with roughly $117 billion in high-grade corporate debt, making it the market's largest non-financial bond issuer, according to Investing.com. "The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce," the company said earlier this year. Oracle already eliminated 21,000 full-time jobs -- roughly 13% of its global workforce -- during fiscal 2026, which ended May 31. The company attributed the cuts to restructuring, performance issues, strategic shifts and acquisitions, while spending $1.84 billion on severance and restructuring. In April, former Oracle employee Nina Lewis accused the tech giant of targeting workers "with outstanding stock options" in layoffs as the company reportedly handed its new CFO a $26 million stock package. Laid-off employees immediately forfeited their unvested stock, according to Marketwise, though their vested stock remained accessible. Despite a huge bad debt, Oracle generated US$57 billion in revenue in the financial year 2025, driven by a workforce of 141,000 employees, according to the company's website. Its extensive infrastructure includes over 18,000 customer support and service specialists fluent in more than 20 languages, alongside 29,000 consulting experts. In recent years, Oracle has become one of the most high-profile companies to leave California, moving its headquarters from Silicon Valley to Austin in 2020 and then to Nashville in 2024. Ellison's son, David Ferris Ellison who runs Paramount Skydance, has threatened to leave the Golden State. The 43-year-old Paramount CEO told his top lieutenants last week that his company would relocate to Tennessee, Texas, Georgia or another state if Bonta refuses to come to the table in his case opposing Paramount's $110 billion acquisition of Warner Bros. Discovery

Oracle may cut more jobs this month as it pours billions into AI infrastructure

Oracle spent $55.7 billion on AI infrastructure last fiscal year and recorded $1.84 billion in restructuring costs. Oracle is reportedly preparing for another round of job cuts this month as the technology company looks to control workforce costs while continuing to spend heavily on artificial intelligence infrastructure. As per Business Insider, managers at Oracle have been asked to identify employees who might be affected by the planned reductions. The reported layoffs may come before the company enters the second fiscal quarter on September 1, with some teams potentially facing cuts of more than 10 per cent. Oracle layoffs on cards? The reported layoffs may add to a massive reduction in Oracle's workforce during the previous fiscal year. The report also stated that the company's headcount fell by around 21,000 employees during fiscal 2026, accounting for roughly 13 percent of its workforce. Oracle ended the period with about 141,000 employees, it added. This comes as Oracle attempts to balance its expanding AI infrastructure business with costs associated with running the company. Managers have reportedly asked to assess their teams and identify positions that can be eliminated, although the final scale of the cuts remains unclear. Oracle spending billions on AI infrastructure The company has increased its investment in infrastructure to meet growing demand for AI computing. It reportedly spent $55.7 billion on AI-related infrastructure during fiscal 2026 and borrowed around $43 billion to help fund its expansion. The company is also reportedly planning to raise another $40 billion through a combination of debt and equity during the current fiscal year. The spending comes as demand for Oracle's cloud infrastructure continues to grow, particularly from customers looking to secure computing capacity for AI workloads. Interestingly, the company's restructuring costs have also increased sharply. A Reuters report from June, citing the company's filings, said Oracle recorded $1.84 billion in severance and other restructuring-related expenses during fiscal 2026, compared with $374 million a year earlier.