Oracle Plans New Layoffs to Fund AI Infrastructure

Oracle Corporation is planning a new round of layoffs for August 2026 to reduce payroll costs before the second quarter begins on September 1. Internal documents indicate that some teams may face job cuts reaching double-digit percentages. This follows a fiscal year 2026 in which the company's workforce already declined by 21,000 employees, a 13% reduction.

The company is implementing these cuts as it aggressively funds AI infrastructure, spending $55.7 billion on data centers and equipment in the 2026 fiscal year. To finance this expansion, Oracle raised $43 billion through debt and $5 billion from stock sales last year, with plans to raise an additional $40 billion in the current fiscal year.

Despite a 17% increase in overall revenue and 77% growth in its cloud infrastructure business, Oracle's stock has fallen nearly 26% this year. Investors have expressed concern over high capital expenditures and the risk that AI might disrupt traditional software tools, though Chairman Larry Ellison has dismissed those concerns.