3 weeks ago
Oracle reportedly plans another layoff round amid AI infrastructure spending
Oracle is a big technology company that makes software and runs giant data centres.
Smart computer programs called artificial intelligence, or AI, need these data centres to work.
Companies like OpenAI pay huge amounts of money to use Oracle's centres.
Building all of this new AI equipment costs a lot, so Oracle has borrowed billions of dollars.
To save money, Oracle is planning more layoffs, which means some workers will lose their jobs.
Oracle already let go of about 21,000 employees over the past year.
According to Oracle's official documents, using AI can lead to fewer jobs because some work gets done with smaller teams.
But one former Oracle worker said AI did not replace his job; it just handled boring, repeated tasks so engineers could focus on harder work.
Oracle has not officially confirmed the newest job cuts yet.
Oracle is reportedly preparing another round of layoffs, with managers asked to identify affected employees before the company's second fiscal quarter begins on September 1, 2026.
Some teams could face cuts reaching double-digit percentages, according to an internal document reviewed by Business Insider and people familiar with the plans.
Oracle's global headcount fell by about 21,000 employees, roughly 13 percent, in fiscal 2026, leaving about 141,000 full-time employees.
Oracle spent $55.7 billion on infrastructure in fiscal 2026, borrowed $43 billion, and plans to raise about $40 billion more this fiscal year through debt and equity.
Oracle has not publicly confirmed the cuts, though its regulatory filing says AI adoption has resulted, and may continue to result, in workforce reductions; a former employee told Firstpost AI did not directly replace his role.
- Who
- Oracle, the technology company, and its employees; Business Insider first reported the planned cuts based on an internal document and people familiar with the plans.
- What
- Oracle is reportedly preparing another round of layoffs, with some teams facing possible double-digit percentage cuts, while spending tens of billions of dollars on debt-funded AI infrastructure.
- Where
- Globally; India and Romania were previously affected by workforce reductions, and a Texas data centre project was scaled back.
- When
- Reported in August 2026, with reductions targeted before Oracle's second fiscal quarter begins on September 1, 2026; fiscal 2026 ended May 31.
- Why
- To reduce payroll and other recurring costs while funding its AI infrastructure buildout, including its reported $300 billion OpenAI cloud partnership, and to meet investor expectations for profitability.
AI Is Reshaping the Workforce
Cuts Are Cost-Driven, Not AI Replacements
Role of AI in the layoffs
AI Is Reshaping the Workforce
Oracle's annual regulatory filing states that the adoption and deployment of AI technologies have resulted, and may continue to result, in workforce reductions, and the company says AI-driven productivity improvements allow some work to be completed with smaller teams.
Cuts Are Cost-Driven, Not AI Replacements
A former Oracle consultant affected by the restructuring said AI had not directly replaced his role; automation reduced repetitive manual tasks while engineering expertise remained necessary, pointing to cost control rather than AI replacing jobs.
Balancing AI investment and job cuts
AI Is Reshaping the Workforce
Tens of billions of dollars in debt-funded spending on data centres and the reported $300 billion OpenAI partnership make controlling recurring costs like payroll necessary to meet investor expectations for profitability.
Cuts Are Cost-Driven, Not AI Replacements
Cutting about 21,000 jobs while borrowing billions and planning to raise more for AI infrastructure raises questions about whether the workforce reductions are actually tied to the AI investment.
Key facts
- Company
- Oracle
- Reported layoffs
- Fresh round expected before September 1, 2026; some teams could face double-digit percentage cuts
- Jobs cut in fiscal 2026
- About 21,000, roughly 13 percent of the workforce
- Current headcount
- About 141,000 full-time employees worldwide
- AI infrastructure spending and funding
- $55.7 billion spent in fiscal 2026, up from $21.2 billion; raised $43 billion in debt and $5 billion in stock; plans about $40 billion more this fiscal year
- Severance and restructuring costs
- $1.84 billion in fiscal 2026, up from $374 million the prior year, per Reuters; total charges may reach $2.1 billion
- OpenAI cloud partnership
- Reported to be worth about $300 billion, announced in 2025
- Business performance
- Revenue up 17% and cloud infrastructure up 77% in fiscal 2026; shares down nearly 26% this year; Chairman Larry Ellison has downplayed 'SaaSpocalypse' disruption concerns
Quotes
Former Oracle engineer
Anonymous former Oracle engineer impacted by restructuring
“"I mainly worked on backend using Java and Spring Boot, where we automated things like validations, data processing, API integrations, and other repetitive coding tasks, reducing manual effort."”
firstpost.com
“"The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce."”
livemint.com
Sources
Oracle Planning Fresh Round Of Layoffs To Offset AI Infrastructure Costs: Report
Is Oracle set for another round of job cuts? Massive AI push puts payroll under pressure
Oracle plans fresh layoffs amid massive AI infrastructure spending: Report
Oracle layoffs: After cutting 21,000 jobs, company plans another layoff wave
Oracle layoffs: Tech giant reportedly plans another round of cuts after 21000 job losses this year—All you need to know
Oracle Plans Fresh Layoffs After Cutting 21,000 Jobs Earlier This Year: Report
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