Oracle set to lay off employees again this month: Report
What's the story
Oracle is preparing for another round of layoffs this month, as part of its strategy to cut payroll costs. The move comes even as the tech giant continues to invest heavily in artificial intelligence (AI) infrastructure. According to a report by Business Insider, managers have been asked to identify employees who could be impacted by the impending job cuts.
Timeline
Layoffs expected before start of 2nd fiscal quarter
The layoffs are expected to be rolled out before Oracle starts its second fiscal quarter on September 1.
Some teams could see cuts running into double-digit percentages, although the exact number of employees who may be affected has not been disclosed.
This comes after a major workforce reduction during fiscal 2026, where Oracle cut its headcount by around 21,000 employees, or some 13% of its workforce.
Financial strategy
Oracle borrows billions to fund AI push
Despite the job cuts, Oracle continues to invest heavily in AI and cloud infrastructure.
The company reportedly spent $55.7 billion on such infrastructure during fiscal 2026.
To fund these investments, Oracle borrowed $43 billion and plans to raise another $40 billion through a mix of debt and equity in the current fiscal year.
Market response
Concerns over cloud infrastructure spending
Despite concerns about its massive infrastructure spending, Oracle continues to see strong demand for its cloud services. The company has seen a surge in computing power requirements from customers developing and deploying AI workloads.
Cost implications
Rising restructuring costs for Oracle
Oracle's restructuring costs have also been on the rise.
A Reuters report from June revealed that the company's filings showed $1.84 billion in severance and other restructuring-related costs during fiscal 2026, compared to $374 million in the previous fiscal year.
If these reported cuts go ahead, they would highlight the tension between reducing operating costs and maintaining substantial investment required to compete in the expanding AI infrastructure market.