Oracle, a multinational computer technology company, is reportedly preparing another round of layoffs, potentially affecting up to 10,000 employees globally.
The major contributing factor is the company’s massive infrastructure spending to fuel its AI cloud business.
The internal estimates put the figures at somewhere around 7,000 and 10,000 jobs and ask the staff to be prepared for an announcement in the beginning or middle of September. The layoffs will happen after the dramatic decrease in the number of employees that led to the reduction of Oracle’s headcount from 162,000 to 141,000 people, which is a 13% reduction, in fiscal 2026.
The layoffs happened amid large spendings on AI infrastructure (data centers, chips, etc.). Oracle spent $55.7 billion on capital expenditures in fiscal 2026 and had negative free cash flow of $23.7 billion. Oracle took $43 billion in debt financing and will need $40 billion in debt and equity financing in the current fiscal year.
As reported by Business Insider, managers have been asked to prepare a list of affected employees, with cuts potentially reaching double-digits on some teams. However, the company has not publicly confirmed this.
Oracle’s cloud infrastructure revenue increased 77% to $18.1 billion in FY2026; the company is under pressure to balance massive capital investments with profitability expectations. Oracle’s annual filing specifically acknowledged that AI technologies have already resulted in workforce reductions.
Following the layoff updates, Oracle stock dropped 3.08% in premarket trading Tuesday, September 1, to $146.20, indicating investor concerns.
2026-09-01 18:41:00
