Oracle To Cut Jobs Again? Inside The AI Spending Spree Behind Reported Fresh Layoffs

Oracle is reportedly preparing for another round of layoffs this month as the technology giant seeks to control payroll costs while continuing to pour billions of dollars into artificial intelligence infrastructure, Business Insider reported.

The company has asked managers to identify employees who could be affected by the latest workforce reduction, according to the report.

The cuts are expected to be implemented before Oracle's second fiscal quarter begins on September 1, with some teams potentially seeing reductions in headcount in the double digits.

Oracle has not publicly confirmed the reported layoffs.

Another Round Of Workforce Cuts

The latest move follows a significant reduction in Oracle's workforce during fiscal 2026. According to Business Insider, the company eliminated around 21,000 positions during the year, representing approximately 13 per cent of its workforce.

Oracle ended fiscal 2026 with roughly 141,000 employees, the report said.

The workforce reductions come as Oracle attempts to balance its operating costs with an aggressive expansion of its AI infrastructure business.

Billions Going Into AI

Oracle has significantly increased spending to capitalise on growing demand for AI computing and cloud services. The company spent $55.7 billion on AI-related infrastructure during fiscal 2026, according to the report.

To fund the expansion, Oracle reportedly borrowed around $43 billion and is planning to raise another $40 billion through a combination of debt and equity during the current fiscal year.

The aggressive investment has helped Oracle position itself to benefit from the rapid growth in AI workloads. Its cloud business has seen strong demand as companies seek additional computing capacity to develop and deploy AI models.

However, the scale of the spending has also raised concerns among investors.

Oracle's shares have declined significantly this year amid questions over the costs associated with its AI infrastructure expansion and the company's ability to generate sufficient returns from those investments.

Rising Restructuring Costs

Oracle's restructuring expenses have also climbed sharply. According to a Reuters report published in June, the company's filings showed that it incurred $1.84 billion in severance and other restructuring costs during fiscal 2026.

That was substantially higher than the $374 million recorded in the previous financial year.

The reported layoffs therefore come as Oracle attempts to reduce its cost base even as it accelerates investment in one of the technology industry's most capital-intensive growth areas.

Neither Oracle nor its executives have publicly confirmed the latest reported job cuts.