Oracle, a multinational computer technology company, is reportedly preparing another round of layoffs, potentially affecting up to 10,000 employees globally. The major contributing factor is the company's massive infrastructure spending to fuel its AI cloud business. Internal estimates put the figures somewhere between 7,000 and 10,000 jobs, asking the staff to be prepared for an announcement in the beginning or middle of September.
These layoffs follow a dramatic decrease in the number of employees that led to the reduction of Oracle's headcount from 162,000 to 141,000 people, marking a 13% reduction in fiscal 2026. The cuts happened amid large spending on AI infrastructure, including data centers and chips. Oracle spent $55.7 billion on capital expenditures in fiscal 2026 and recorded a negative free cash flow of $23.7 billion. Furthermore, Oracle took $43 billion in debt financing and will need another $40 billion in debt and equity financing in the current fiscal year.
As reported by Business Insider, managers have been asked to prepare a list of affected employees, with cuts potentially reaching double digits in some teams. However, the company has not yet publicly confirmed this. Oracle's cloud infrastructure revenue increased by 77% to $18.1 billion in FY2026, and the company remains under immense pressure to balance massive capital investments with profitability expectations. Oracle's annual filing specifically acknowledged that AI technologies have already resulted in workforce reductions.
Following the layoff updates, Oracle stock dropped 3.08% in premarket trading on Tuesday, September 1, falling to $146.20 and highlighting growing investor concerns.