Oracle plans new layoffs to fund AI infrastructure investments

Oracle is reportedly preparing a new round of layoffs to reduce personnel expenses as the company aggressively invests in artificial intelligence infrastructure. According to internal documents and sources cited by Business Insider, some business units could face double-digit workforce reductions. Management has reportedly been asked to prepare lists of affected employees, with the goal of completing these cuts before the start of the second fiscal quarter on September 1.

The move comes as Oracle faces significant financial pressure from massive capital expenditures required to build data centers and procure AI chips. For the 2026 fiscal year, the company invested $55.7 billion in AI infrastructure, resulting in cash outflows exceeding cash inflows by $23.7 billion. To fund these expansions, Oracle has utilized significant debt financing, including $43 billion in debt issuance during the 2026 fiscal year.

This potential downsizing follows previous reductions; Oracle’s workforce decreased by approximately 21,000 employees (13%) in the fiscal year ending May 31, 2026, bringing the total headcount to roughly 141,000. While Oracle’s cloud infrastructure revenue grew by 77% due to AI demand, the company is working to balance these high investment costs with investor expectations for profitability.