Oracle plans fresh job cuts in August as $55.7 billion AI spending drives massive debt burden

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 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.