Oracle reportedly plans fresh layoffs this month after cutting 21,000 jobs earlier this year; cloud demand strong but shares decline

Oracle is preparing for another round of layoffs this month as it seeks to cut payroll costs while investing heavily in artificial intelligence infrastructure. This follows a significant reduction of 21,000 jobs earlier this year, which represented about 13 percent of its workforce, leaving approximately 141,000 employees.

According to a report by Business Insider, managers have been asked to identify employees who may be affected, with some teams facing potential cuts in double-digit percentages before the second fiscal quarter begins on September 1.

In fiscal 2026, Oracle spent $55.7 billion on AI-related infrastructure and borrowed $43 billion to support these investments. The company plans to raise an additional $40 billion through debt and equity this fiscal year. Despite the heavy spending, demand for Oracle's cloud services remains robust, driven by increasing demand for AI computing capacity. However, this scale of investment has raised concerns among investors, leading to a significant decline in Oracle's shares this year.

In fiscal 2026, Oracle reported spending $1.84 billion on severance and restructuring costs, a sharp increase from $374 million the previous year. Neither Oracle nor its executives have publicly confirmed the latest layoffs.