Oracle has initiated a new wave of layoffs, impacting several teams with double-digit percentage cuts, according to reports from three affected employees and an internal email seen by Business Insider. The workforce reduction began on Monday.
AI Infrastructure Drives Debt and Downsizing
This latest round of cuts follows earlier downsizing earlier this year. A report from Business Insider last month highlighted Oracle’s plan to implement further layoffs to manage labor costs, as the company takes on significant debt to fund its substantial investments in artificial intelligence infrastructure.
Internal documents suggest that the scale of the layoffs varies by team, with some experiencing cuts as high as double digits.
Employee Reactions and Previous Reductions
Discussions and posts on platforms like LinkedIn, Reddit, and the anonymous workplace community Blind started appearing on Monday, with individuals confirming they were affected by the recent layoffs.
These recent actions add to Oracle’s ongoing efforts to streamline its workforce. Filings submitted previously show that Oracle’s total headcount decreased by 21,000 employees, a 13% reduction, in the fiscal year 2026, which ended on May 31. Before this latest round of cuts, the company reported having approximately 141,000 employees.
Massive Capital Expenditure for AI Ambitions
Oracle has accumulated tens of billions of dollars in debt to finance the construction of data centers and capitalize on the growing demand for AI. Financial reports indicate a substantial increase in capital expenditure, reaching $28.5 billion in the first quarter, a significant jump from $8.5 billion in the same period last year. The company has maintained its capital expenditure forecast for fiscal year 2027, targeting a range of $90 billion to $95 billion.
Market Skepticism Despite Cloud Growth
Despite recent positive signals in Oracle’s latest earnings report, including growth in its cloud business, Wall Street analysts remain cautious about the company’s ambitious AI strategy and its potential return on investment.
