Oracle layoffs: After 21,000 job cuts, another round could bring back 6am employee notifications
Oracle is reportedly preparing another round of workforce reductions this month, following a 21,000-employee decline in headcount during the fiscal year ended May 2026, as the company continues to invest heavily in AI infrastructure.
Oracle is preparing for another round of job cuts, with managers reportedly asked to identify positions that could be eliminated before the company enters its second fiscal quarter on September 1, Business Insider reported, citing people familiar with the plans and an internal document.
According to the report, the scale of the reductions could reach double-digit percentages in some teams. Oracle has not publicly confirmed the planned layoffs and declined to comment on the report.
The potential cuts come after a substantial reduction in Oracle’s workforce during the fiscal year ended May 31, 2026. The company’s global headcount declined by about 21,000 employees, or roughly 13%, during the year, taking its workforce to approximately 141,000.
AI infrastructure spending puts pressure on costs
The workforce reductions are taking place as Oracle commits significant capital to expanding its infrastructure for artificial intelligence and cloud computing.
Oracle’s infrastructure spending reached $55.7 billion in the last fiscal year, according to the information provided. The company has also raised substantial amounts through debt and equity markets to fund its expansion.
Oracle has been expanding its data-centre footprint and cloud infrastructure to support that demand.
The company’s annual filing also indicated that the increasing adoption of AI had contributed to workforce reductions and could lead to further changes in its employee base.
Headcount cuts follow a year of restructuring
The proposed layoffs would extend a restructuring process that has already reduced Oracle’s workforce significantly.
Oracle’s restructuring expenses rose to $1.8 billion in the latest fiscal year, compared with $374 million a year earlier. The company has been reorganising parts of its business while directing resources towards cloud infrastructure and other growth areas.
The cuts also come despite continued growth in Oracle’s business. Revenue increased 17% during the latest fiscal year, while its cloud infrastructure business recorded substantially faster growth.
Oracle faces rising demand as AI spending accelerates
Oracle has increasingly positioned its cloud infrastructure business around AI workloads. The company has reported a large pipeline of future cloud commitments as customers seek access to additional computing capacity.
At the same time, Oracle’s increasing capital requirements have raised questions among investors about debt, cash flow and the long-term economics of the AI infrastructure buildout.
Business Insider’s report did not establish the final number of employees who could be affected or whether the reported plans will be implemented across all of Oracle’s locations.