Oracle Layoffs: New Cuts Could Follow 21,000 Job Losses

Oracle layoffs could be coming again as the technology giant looks to reduce payroll costs while spending heavily on artificial intelligence infrastructure.

According to a report from Business Insider, Oracle has asked managers to identify employees who could be affected by another round of cuts. The company reportedly wants to reduce its payroll before the second quarter begins on Sept. 1.

Neither Oracle nor its executives have publicly confirmed the reported layoffs.

Oracle layoffs could come after 21,000 job cuts

The reported cuts would follow a major workforce reduction at Oracle during fiscal 2026.

The company’s workforce fell by about 21,000 employees, or 13%, during the fiscal year that ended May 31, according to its annual filing. Oracle reported having about 141,000 employees at the end of the period.

Oracle also acknowledged that the adoption and use of AI could continue to reduce its workforce. The company said workforce changes can also result from management decisions, product changes, performance issues, strategic realignments and acquisitions.

The latest report suggests that more employees could be affected as Oracle continues to restructure its business.

Some teams could reportedly face cuts in the double-digit percentage range. However, the exact number of employees who could lose their jobs has not been disclosed.

Why Oracle is cutting jobs again

The potential Oracle layoffs come as the company pours billions of dollars into AI and cloud infrastructure.

Oracle spent $55.7 billion on capital expenditures during fiscal 2026, much of it connected to data centers and infrastructure. The spending contributed to negative free cash flow of $23.7 billion for the year.

At the same time, Oracle has been raising significant amounts of money to finance its expansion. The company raised $43 billion through debt financing and $5 billion through equity financing during fiscal 2026.

Oracle expects to raise about $40 billion through debt and equity during fiscal 2027. The plan includes a previously announced $20 billion equity offering.

The company has also projected net capital expenditures of roughly $70 billion for the current fiscal year.

Oracle continues to invest heavily in AI

The potential layoffs come despite strong demand for Oracle’s cloud business.

Oracle reported $67.4 billion in revenue for fiscal 2026, an increase of 17% from the previous year. Cloud revenue climbed 39% to $34 billion, while cloud infrastructure revenue jumped 77% to $18.1 billion.

The company also reported record remaining performance obligations of $638 billion, reflecting strong contracted demand for its cloud services and AI infrastructure.

That growth, however, comes alongside enormous spending requirements. Oracle is building data centers and expanding computing capacity to meet demand from major AI customers.

What happens next?

For now, the reported Oracle layoffs remain unconfirmed by the company.

Managers have reportedly been asked to prepare potential lists of affected employees, with the payroll reduction expected to take place before Sept. 1.

The situation highlights a growing tension across the technology industry. Companies are investing aggressively in AI while also looking for ways to control costs and improve efficiency.

For Oracle employees, the next few weeks could provide more clarity about whether another round of job cuts will move forward.

Source: Business Insider, Oracle’s fiscal 2026 financial results and regulatory filings.