United States – Oracle has begun another round of job cuts as the company increases spending on artificial intelligence (AI) infrastructure and plans further investment in data centres.
According to reporting by Business Insider, affected employees received termination emails on Monday, 14th of September, informing them that their roles were being eliminated as part of a “broader organisational change”. The company has not publicly disclosed the number of employees affected in the latest round.
The reported cuts follow a reduction of around 21,000 employees, or 13% of Oracle’s workforce, during its fiscal 2026 year ended 31 May. Oracle had approximately 141,000 employees before the latest round of reductions.
Reports said affected employees were offered four weeks of base salary plus an additional week for each year of service, subject to the terms of their employment and the applicable severance arrangements. Employees were also told that access to corporate systems would be deactivated and were asked to provide personal email addresses for separation documentation.
Restructuring alongside AI investment
The latest workforce reductions come as Oracle increases its investment in AI and cloud infrastructure. The company said on the 11th of September that it would raise its expected fiscal 2026 restructuring costs by approximately $700 million to about $2.8 billion, covering areas including severance, contract terminations and other exit costs. Reuters reported that the restructuring is partly linked to Oracle’s adoption of AI across some functions.
At the same time, Oracle reported $28.5 billion in capital expenditure during its latest quarter and has maintained a fiscal 2027 capital expenditure forecast of between $90 billion and $95 billion. The company is also planning to raise approximately $40 billion through debt and equity financing during the fiscal year to support its expansion.
Oracle’s increased spending is centred on expanding data centre capacity and cloud infrastructure to meet demand for AI services. In its latest quarterly results, the company reported more than $30 billion in new AI cloud contracts during the first fiscal quarter and a total remaining performance obligation of $664 billion.
The company’s restructuring and infrastructure spending therefore reflect two parallel developments: reductions in parts of its workforce and increased capital allocation towards AI and cloud infrastructure.
Oracle has not publicly commented on the latest reported layoffs. Business Insider said the company did not immediately respond to its request for comment.
The developments highlight the changing cost structure of large technology companies as they redirect resources towards AI infrastructure while restructuring other areas of their operations.
