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Oracle starts new round of layoffs as AI spending raises debt: Which departments will be impacted?
Oracle begins new lay off a significant portion of its workforce, with reductions possibly spanning 7,000 to 10,000 roles, amid a major organizational change.
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Oracle has initiated a new phase of layoffs, according to three persons affected and an email forwarded to Business Insider.
The layoffs, anticipated to commence on September 14, will affect various departments, with certain teams experiencing workforce reductions exceeding 10%, as per an internal document examined by Business Insider.
Oracle new layoffs impacting various departments
The notification email informed impacted employees that their positions had been terminated as part of a larger organizational restructuring, and that their last working day was immediate, as reported by Business Insider, referencing three affected employees and an internal email.
“After careful consideration of Oracle's current business needs, we have made the decision to eliminate your role as part of a broader organizational change,” stated copies of the layoff notification email, as reported by Business Insider. “As a result, today is your last working day.”
The most recent layoffs come after a larger reduction in the workforce that occurred earlier this year. According to a company filing, Oracle's workforce decreased by approximately 21,000 employees, representing a 13% decline, during the fiscal year that concluded on May 31, 2026. Prior to these latest layoffs, the company employed around 141,000 people.
Oracles job cuts and expansion of data centres
Oracle's recent layoffs coincide with its decision to incur tens of billions of dollars in debt to support the expansion of data centers and address the increasing demand for AI computing.
In the first quarter, the company reported capital expenditures amounting to $28.5 billion, a significant rise from $8.5 billion in the same period last year, while it has upheld its forecast for fiscal 2027 capital expenditures at between $90 billion and $95 billion.
The firm has not publicly revealed the number of positions impacted by this latest round of layoffs. Estimates suggest that cuts may range from 7,000 to 10,000, but these figures remain unverified.
Here's what Oracle's regulatory filing says
Oracle revealed in a regulatory filing that it is increasing its anticipated job cuts by around $700 million, which raises the total projected expense of its 2026 Restructuring Plan to approximately $2.8 billion as the company continues its expensive AI data center expansion.
The additional expenses signify “additional actions that we expect to take,” the company stated. The plan, which received approval during fiscal 2026, includes severance payments, fees for contract terminations, and associated exit costs, with a segment of the reduction associated with Oracle's implementation of AI across various sectors of its operations.
