Oracle Plans Further Job Cuts to Fund AI Investments
The tech giant is reportedly preparing for a second round of layoffs this year, aiming to trim payroll as it significantly increases spending on artificial intelligence infrastructure.
Oracle is preparing for another round of job cuts, with some teams potentially facing double-digit percentage reductions as the company continues to funnel billions into artificial intelligence infrastructure. Managers have reportedly been asked to identify employees for layoffs before the company's second fiscal quarter begins on September 1, according to a report citing sources with direct knowledge.
This move follows earlier layoffs this year, during which Oracle eliminated approximately 21,000 full-time roles, representing about 13% of its global workforce. The company attributed these cuts to restructuring, performance issues, strategic shifts, and acquisitions, while spending $1.84 billion on severance and restructuring costs.
Despite these workforce reductions, Oracle is substantially increasing its investment in AI. The company spent $55.7 billion on data centers in fiscal 2026, a significant leap from $21.2 billion in fiscal 2025. Oracle's CEO Larry Ellison has previously stated that the adoption and deployment of AI technologies may lead to workforce reductions.
These strategic decisions come as Oracle manages approximately $117 billion in high-grade corporate debt, making it one of the largest non-financial bond issuers. Laid-off employees have reportedly forfeited unvested stock options, although vested stock remains accessible.
In recent years, Oracle has relocated its headquarters, moving from Silicon Valley to Austin, Texas, in 2020, and then to Nashville in 2024.