{"slug": "after-brutal-6am-layoffs-oracle-plans-fresh-job-cuts-as-billions-in-ai-spending", "title": "After Brutal 6AM Layoffs, Oracle Plans Fresh Job Cuts as Billions in AI Spending Drive More Payroll Cuts", "summary": "Oracle Corp. is planning another round of job cuts as it seeks to control payroll costs while investing billions in AI infrastructure, with managers asked to identify employees for potential cuts and some teams facing double-digit percentage reductions ahead of its second quarter starting September 1. Oracle's headcount fell by about 21,000 to approximately 141,000 employees in fiscal 2026, a 13% decline from 162,000 a year earlier, as the company attributed reductions to AI adoption and restructuring. Capital expenditures reached $55.7 billion in fiscal 2026, free cash flow fell to negative $23.7 billion, and the company raised $43 billion in debt and $5 billion in equity, expecting another $40 billion in fiscal 2027.", "body_md": "# After Brutal 6AM Layoffs, Oracle Plans Fresh Job Cuts as Billions in AI Spending Drive More Payroll Cuts\n\n## Oracle's AI gamble is reshaping its workforce, and thousands are paying the price\n\nOracle is reportedly gearing up for another round of job cuts as it attempts to control staffing costs while committing billions of dollars to artificial intelligence infrastructure. According to reports, sources familiar with the situation and an internal document indicate that managers have been asked to identify employees who could face cuts.\n\nSome teams could see double-digit percentage reductions, with the company seeking to trim payroll ahead of the start of its second quarter on 1 September. The move would follow a significant workforce reduction earlier this year, with [Oracle](https://www.ibtimes.co.uk/oracle-financial-strain-ai-infrastructure-expansion-1810483)'s headcount falling by about 21,000.\n\n## Oracle's Workforce Shrinks Again\n\nOracle ended fiscal 2026 with approximately 141,000 employees, about 13% fewer than the 162,000 it reported a year earlier. In its annual filing, the company said workforce restructuring and other changes had reduced its headcount, while noting that the adoption and deployment of AI technologies had also resulted in workforce reductions. 'The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,' Oracle said.\n\nIt remains unclear how extensive the latest reported cuts could be. The company has not confirmed the number of jobs at risk, the divisions involved, or when affected staff might be notified.\n\n## The Price of the AI Race\n\nOracle's headcount reductions come as the company ramps up investment in cloud infrastructure to meet rising demand for AI services. Capital expenditures reached $55.7B in fiscal 2026, while free cash flow fell to negative $23.7B.\n\nTo help fund that expansion, Oracle raised $43B in debt and another $5B through equity. It expects to raise another $40B through debt and equity in fiscal 2027. The spending underscores the scale of AI demand. Oracle's full-year revenue rose 17% to a record $67.4B, while cloud infrastructure revenue jumped 77% to $18.1B.\n\n## Booming Demand, Soaring Costs\n\nCloud demand remains strong, with Oracle's remaining performance obligations soaring to $638B by the end of fiscal 2026. The company said most of the increase came from large-scale AI contracts in which customers either prepaid for GPUs or bought and supplied the hardware themselves.\n\nHowever, meeting that demand comes with enormous costs. Oracle must invest heavily in data centres, chips, networking equipment, and other infrastructure. That creates a difficult balancing act: expand fast enough to capitalise on AI demand while keeping costs in check. The company also has to convince investors that the huge spending will deliver strong returns.\n\nOracle's stock remains down sharply this year despite a recent rebound, amid broader investor concerns over its heavy AI spending. The shares have also been caught up in wider concerns about whether AI could disrupt traditional software businesses. Oracle Chairman Larry Ellison pushed back on those concerns during a March earnings call, saying he believed the so-called 'SaaSpocalypse' applied to other software companies, not Oracle.\n\n## Employees Told to Watch Their Inboxes\n\nOracle employees are reportedly watching their inboxes closely as uncertainty grows over the potential cuts. During the previous [layoffs](https://www.ibtimes.co.uk/low-hire-low-fire-economy-fresh-wave-mass-layoffs-hits-amazon-walmart-fedex-workers-1811913), some employees were reportedly notified by early-morning emails signed 'Oracle Leadership' informing them that their roles had been eliminated.\n\nAt the same time, Oracle's restructuring and other expenses climbed to $1.84B in fiscal 2026. This is more than four times the $374M recorded a year earlier. The increase was primarily driven by higher restructuring expenses, with Oracle's filing stating that restructuring costs primarily related to employee severance under its 2026 Restructuring Plan.\n\n© Copyright IBTimes 2025. All rights reserved.", "url": "https://wpnews.pro/news/after-brutal-6am-layoffs-oracle-plans-fresh-job-cuts-as-billions-in-ai-spending", "canonical_source": "https://www.ibtimes.co.uk/oracle-job-cuts-ai-investment-1813968", "published_at": "2026-08-13 06:44:43+00:00", "updated_at": "2026-08-13 06:44:55.734201+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-policy"], "entities": ["Oracle Corp.", "Larry Ellison"], "alternates": {"html": "https://wpnews.pro/news/after-brutal-6am-layoffs-oracle-plans-fresh-job-cuts-as-billions-in-ai-spending", "markdown": "https://wpnews.pro/news/after-brutal-6am-layoffs-oracle-plans-fresh-job-cuts-as-billions-in-ai-spending.md", "text": "https://wpnews.pro/news/after-brutal-6am-layoffs-oracle-plans-fresh-job-cuts-as-billions-in-ai-spending.txt", "jsonld": "https://wpnews.pro/news/after-brutal-6am-layoffs-oracle-plans-fresh-job-cuts-as-billions-in-ai-spending.jsonld"}}