Oracle Has Drawn Plans for Another Round of Job Cuts This Month

Key Points:

• Oracle is planning a new round of job cuts, potentially reaching double-digit percentages on some teams, to reduce payroll ahead of the second quarter starting September 1, as part of efforts to manage billions in debt incurred for AI infrastructure investments.
• The company’s workforce shrank by 13% (21,000 employees) in the 2026 fiscal year, and Oracle currently employs about 141,000 people, reflecting ongoing workforce reductions amid heavy capital spending.
• Oracle spent $55.7 billion on infrastructure in fiscal 2026, including new data centers, with $23.7 billion more cash outflow than inflow, funded by $43 billion in debt and $5 billion from stock sales, and plans to raise an additional $40 billion through debt and stock this fiscal year.
• Despite a 17% revenue increase and 77% growth in its cloud infrastructure business driven by AI demand, Oracle faces pressure to balance massive infrastructure spending with profitability expectations, contributing to a nearly 26% decline in its stock this year.
• Oracle Chairman Larry Ellison dismissed concerns about AI replacing traditional software tools, stating that while other companies might face a "SaaSpocalypse," he does not believe Oracle will be significantly affected.