Oracle Starts Another Round of Job Cuts as AI Infrastructure Investment Surges

Oracle has started another round of layoffs as the company continues increasing its spending on artificial intelligence infrastructure, according to a report cited by Business Standard. The latest job cuts follow a reduction of around 21,000 positions during financial year 2026, which ended on May 31.

Employees affected by the latest cuts received termination emails stating that their positions had been removed as part of a broader organisational change. The employees were reportedly informed that the day they received the notification would be their final working day. The report also said that some workers lost access to corporate systems before receiving the termination communication.

Employees were reportedly offered four weeks of base salary along with an additional week for every year they had worked at the company.

Oracle's workforce declined by 13 per cent during FY26 to approximately 141,000 employees before the latest layoffs. Business Insider had previously reported that the company was preparing additional cuts as it works to reduce payroll while taking on billions of dollars in debt to finance its AI infrastructure expansion. Some teams were expected to see cuts reaching double-digit percentages.

At the same time, Oracle is increasing its investment in AI infrastructure. The company reported capital expenditure of $28.5 billion in the first quarter, compared with $8.5 billion a year earlier. Oracle also maintained its FY27 capital expenditure outlook of $90 billion to $95 billion as it continues developing data centres to address anticipated demand for AI services.

Reuters reported that Oracle's restructuring expenses are expected to increase by around $700 million, bringing the estimated cost of its FY26 restructuring programme to approximately $2.8 billion. The increase was partly associated with the adoption of AI across certain functions.