Oracle Plans More Job Cuts as AI Infrastructure Spending Soars
Reports indicate that Oracle is getting ready for another wave of layoffs this month as it aims to lower payroll expenses while maintaining significant investment in artificial intelligence infrastructure.
Oracle requested managers to pinpoint employees who might be impacted. Some teams may experience cuts reaching double-digit percentages, as the company seeks to lower payroll prior to the beginning of its second fiscal quarter on September 1.
The announced strategy emerges only weeks after Oracle revealed in its Securities and Exchange Commission (SEC) filings for FY26 that its employee count had decreased by approximately 21,000 during 2025-2026, roughly 13 percent of its total workforce.
As of May 31, 2026, its workforce numbered around 141,000, a decrease from roughly 162,000 the previous year. In the filing, the company stated that its restructuring initiative included modifications related to the implementation and incorporation of AI technologies, along with other operational actions.
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Oracle's restructuring costs have increased significantly. In FY26, it reported $1.8 billion in restructuring costs, up from $374 million the previous year. The total cost of its restructuring plan for 2026 is estimated to reach as much as $2.1 billion.
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In FY2026, Oracle's revenue grew by 17 percent to $67.4 billion, while overall cloud revenue surged by 39 percent to $34 billion. During the fourth quarter, revenue from cloud infrastructure surged by 93 percent to reach $5.8 billion.
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Concurrently, Oracle's expenditures on data centers have also increased. The firm's capital spending hit $55.7 billion in FY26, compared to $21.2 billion the previous year. Oracle stated in its yearly report that the rise was mainly attributed to the growth of its data centers and cautioned that capital expenditures would probably keep increasing as it enhances current capacity and builds data centers in new sites.