2 hrs ago
Oracle Expands Job Cuts Amid AI Data-Center Cash Crunch
Oracle is spending a lot of money building data centers for artificial-intelligence customers.
Because this is putting pressure on its cash, the company plans to cut more jobs.
Oracle now expects its restructuring program to cost about $2.8 billion.
Much of that money will pay severance to workers who lose their jobs.
The company says the cuts will simplify its operations and reduce costs.
Oracle had 21,000 fewer employees than it did a year earlier.
Chairman Larry Ellison also received permission to sell up to 50 million Oracle shares.
The company’s stock had fallen 16 percent since June 22, according to the report.
Oracle increased the estimated cost of its 2026 Restructuring Plan by $700 million to about $2.8 billion.
The company said the additional cost reflects further actions it expects to take, mainly involving employee severance.
Oracle is facing financial pressure from its costly expansion of artificial-intelligence data centers, including facilities for OpenAI.
The company had about 49,000 U.S. employees and 92,000 international employees at the end of May, down 21,000 from a year earlier.
A new trading plan allows Chairman Larry Ellison to sell up to 50 million Oracle shares through October 24.
- Who
- Oracle Corporation, its employees, Chairman Larry Ellison, and Chief Financial Officer Hilary Maxson.
- What
- Oracle increased the expected cost of its job-cutting plan by $700 million and disclosed a share-sale plan for Larry Ellison.
- Where
- The workforce reductions affect Oracle employees in the United States and internationally; the data-center expansion is described generally, with no specific locations given.
- When
- The restructuring cost increase was disclosed in a regulatory filing; Ellison’s trading plan was adopted June 22 and runs through October 24.
- Why
- Oracle said it is taking additional cost-cutting actions while facing financial pressure from building large artificial-intelligence data centers.
Cost-Cutting Rationale
Financial and Workforce Concerns
Reason for job cuts
Cost-Cutting Rationale
Oracle says simplification and efficiency actions will reduce costs and protect profit margins.
Financial and Workforce Concerns
The reported expansion of the cuts reflects financial pressure from the expensive construction of artificial-intelligence data centers.
Impact on employees
Cost-Cutting Rationale
The restructuring is presented as a way to manage expenses while continuing Oracle’s data-center development.
Financial and Workforce Concerns
Employees face additional layoffs and severance-related restructuring costs as the workforce has already fallen by 21,000 from a year earlier.
Key facts
- Restructuring plan
- Oracle’s 2026 Restructuring Plan is now estimated to cost about $2.8 billion.
- Cost increase
- The company increased the estimate by $700 million, citing additional expected actions.
- Costs accrued
- Oracle had already accrued about $2.1 billion related to the plan.
- Workforce
- Oracle had about 49,000 U.S. workers and 92,000 international employees at the end of May.
- Year-over-year change
- The company’s workforce was down by 21,000 employees from a year earlier.
- Share-sale plan
- Larry Ellison may sell up to 50 million Oracle shares through October 24.
- Share-price change
- Oracle shares declined 16 percent from their June 22 close through the Friday close mentioned in the report.
Sources
Related news
Oracle Raises Restructuring Costs While Expanding AI Spending
Oracle Reportedly Plans Fresh India Layoffs Amid AI Infrastructure Spending
Oracle Layoffs Reshape India’s IT Jobs Amid Cloud Expansion
Oracle Reportedly Weighs Broad Layoffs Amid Budget Cuts
Wall Street Rallies as Inflation Data Boosts Rate-Hike Bets
US Stock Futures Rise as Oil Retreats Before CPI Data
Fleetable Expands AI-Enabled Platform for India’s Logistics Industry