Oracle Reportedly Plans Another Round of Layoffs This Month Amid AI Spending

Oracle is mulling more layoffs this month, as the company looks to reduce payroll costs and continue its big investment in artificial intelligence infrastructure, according to people and an internal document.

The reported cuts could come before Oracle starts its second quarter on September 1, and some teams could see reductions in double digits, according to the company. The exact number of workers who could be affected has not been disclosed, and Oracle has not publicly confirmed the reported layoffs.

The latest development comes after a huge workforce reduction early in 2026. Oracle cut around 21,000 jobs (roughly 13% of its workforce), leaving it with around 141,000 employees today. At the same time, Oracle is turning its attention to cloud computing and rapidly expanding AI infrastructure businesses.

Oracle is also experiencing very strong demand for its cloud services. Its cloud infrastructure revenue has grown 77% year over year, highlighting the importance of AI and cloud computing to the company's future. But the scale of data-centre capacity is huge and costs for the business have to be managed elsewhere in the organisation.

And the company spent $55.7 billion on AI investments in its 2026 fiscal year and borrowed around $43 billion, according to reports. Oracle also plans to raise $40 billion in debt and equity, according to sources. And investors now are worried about how Oracle will fund its big data centre expansion.

As a result, the layoffs seem to be part of a wider restructuring and not just because of weakening demand. Oracle is trying to put its resources in areas that could benefit from the AI boom while reducing spending in other areas of its business.

But for employees, however, a second round of job cuts could create huge uncertainty– especially in teams already affected by the restructuring earlier this year. Managers are being urged to write down the list of employees who may have been affected, but the extent of the cuts is unclear.

The development also fits into a larger trend in the global technology industry where companies are increasingly balancing AI investment with workforce optimisation. Businesses are spending big on data centres, chips and AI platforms and also taking a look at traditional roles and organisational structures.

For now, the Oracle layoffs are not completely confirmed. If the company does carry out the planned cuts, it would be yet another major workforce restructuring in the same year.