● Covered by 1 source · 1 reportMedium impact1 neutral
Oracle plans further layoffs after spending most of its $2.1 billion restructuring budget
Key points
- Oracle plans more job cuts in August, with some teams seeing double-digit reductions.
- The company cut 21,000 full-time positions (13% of its workforce) in the last fiscal year.
- Oracle spent $1.8 billion of its $2.1 billion restructuring budget in fiscal 2026.
- The company borrowed $43 billion for AI data center construction in fiscal 2026.
Upcoming Job Reductions
Oracle is reportedly preparing for another round of job cuts this month, according to Business Insider. These reductions are expected to affect some teams with double-digit percentage decreases in headcount. Managers have been instructed to compile lists of employees for potential termination, with the goal of reducing payroll before the start of the second fiscal quarter on September 1.
Previous Workforce Reductions and Restructuring Costs
This new round of layoffs would follow a year of significant workforce reductions at Oracle. In the fiscal year ending May 31, the company eliminated 21,000 full-time positions, representing 13% of its total workforce. Oracle's Fiscal 2026 Oracle Restructuring Plan had a total expected cost of $2.1 billion, with $1.8 billion already recorded in fiscal 2026. This leaves approximately $300 million remaining under the current plan, suggesting that further large-scale cuts might necessitate a new restructuring plan.
AI Investment and Financial Context
Oracle attributed some of the fiscal 2026 headcount decline to internal AI adoption and indicated that further reductions would occur as AI deployment expands. The company's capital expenditure reached $55.7 billion in fiscal 2026, a substantial increase from $21.2 billion the previous year. To cover this spending, Oracle borrowed $43 billion in debt and raised $5 billion through stock sales during the year, with plans to secure an additional $40 billion in fiscal 2027. Interest expenses also rose to $4.6 billion from $3.6 billion a year earlier.
Revenue Growth and Shareholder Concerns
Despite the significant spending and workforce changes, Oracle reported a 77% growth in cloud infrastructure revenue and a 17% increase in total revenue for fiscal 2026. However, the company's stock is down over 20% this year, and shareholders filed a lawsuit in January regarding statements about the borrowing required for its $300 billion OpenAI commitment. Oracle has not officially confirmed the new layoff plans.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Oracle is reportedly planning additional job cuts this month, with some teams facing double-digit percentage reductions, following the elimination of 21,000 positions in the last fiscal year. These reductions aim to lower payroll before the second fiscal quarter and align with the company's increased investment in AI data centers, which has led to significant borrowing and capital expenditure.