Oracle plans fresh layoffs amid AI spending

Oracle Corporation is reportedly preparing another round of layoffs this month, with managers asked to identify employees for potential cuts before the company's second fiscal quarter begins on September 1. Some teams may face reductions in double-digit percentages. This follows a significant workforce reduction in fiscal 2026, when Oracle's headcount fell by about 21,000 employees, or roughly 13%, leaving approximately 141,000 employees. The reported layoffs come as Oracle ramps up spending on AI infrastructure, having spent $55.7 billion in fiscal 2026 and borrowed $43 billion to fund expansion. The company plans to raise an additional $40 billion through debt and equity in the current fiscal year. Oracle's restructuring costs reached $1.84 billion in fiscal 2026, up from $374 million the prior year. The company's cloud business is growing strongly, with revenue up 17% and cloud infrastructure revenue up 77%, but its stock has declined nearly 26% this year amid concerns about heavy capital spending and the potential impact of AI on traditional software. Oracle has not publicly confirmed the latest reported layoffs.