Oracle layoffs are set to deepen as the company prepares another round of cuts this year while committing billions more to artificial intelligence infrastructure, according to a report. Managers have reportedly been told to identify employees for possible elimination, with some teams facing double-digit percentage reductions before the company’s second quarter begins on Sept. 1.
Business Insider reported that the staffing cuts could hit multiple teams and that the aim is to lower payroll quickly. Oracle, led by Chief Executive Larry Ellison, has already been pouring money into AI-related buildout. The company spent $55.7 billion on data centers in fiscal 2026, up 163% from $21.2 billion in fiscal 2025, as it expanded the backbone needed to support its cloud and AI business.
The Oracle layoffs come as the company works through a heavy debt load. Oracle carries roughly $117 billion in high-grade corporate debt, which makes it the market’s largest non-financial bond issuer, according to Investing.com. At the same time, Oracle has publicly tied some workforce reductions to the rise of AI inside its own operations. Earlier this year, the company said that “the adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce.”
This would not be Oracle’s first major staffing move of the year. The company eliminated 21,000 full-time jobs during fiscal 2026, equal to about 13% of its global workforce, before the year ended on May 31. Oracle said those cuts were connected to restructuring, performance issues, strategic changes and acquisitions. It also spent $1.84 billion on severance and restructuring costs.
The latest round has also drawn attention from former employees. In April, former Oracle worker Nina Lewis accused the company of targeting employees with outstanding stock options during layoffs, while reports also said the company gave its new chief financial officer a $26 million stock package. According to Marketwise, laid-off employees immediately lost unvested stock, though vested shares remained available to them.
