Oracle Plans Another Round of Layoffs Amid AI Investment
Oracle employees are bracing for more layoffs as the company shifts its focus towards AI infrastructure, following a report indicating that a second wave of job cuts is scheduled for this year.
It’s suggested that some teams may see significant layoffs, potentially in the double digits. Sources informed Business Insider that managers have been instructed to compile lists of employees to be affected, aiming to cut salaries before September 1, which marks the beginning of the second quarter.
As these layoffs unfold, Oracle is heavily investing in AI, having allocated $55.7 billion for data centers in the 2026 fiscal year—a staggering 163% jump from the previous year’s $21.2 billion.
The tech giant already made headlines earlier this year when it cut approximately 21,000 full-time positions, which amounts to about 13% of its total workforce, primarily citing restructuring and strategic changes. The company has recorded $1.84 billion in severance and restructuring expenses as part of these cuts.
Led by CEO Larry Ellison, Oracle is navigating financial pressures due to its significant corporate debt, estimated at around $117 billion. In a statement made earlier, the company acknowledged that the shift towards AI technology may lead to further workforce reductions.
In an additional controversy, ex-employee Nina Lewis accused Oracle of targeting those with “unpaid stock options” for layoffs, particularly after a $26 million stock package was awarded to the newly appointed CFO.
Interestingly, terminated employees lose any unvested shares immediately, although any vested shares remain accessible. This policy has caused concern among some of the workforce, adding to the already tense atmosphere surrounding job security.
Despite these financial dilemmas, Oracle boasts a workforce of 141,000 and reported revenues of $57 billion for the 2025 fiscal year. The company supports a vast infrastructure, employing more than 18,000 customer service professionals and 29,000 consultants fluent in over 20 languages.
Oracle has also made headlines for relocating its headquarters, moving from Silicon Valley to Austin in 2020, and is planning a shift to Nashville in 2024.
In a related note, David Ferris Ellison, son of Larry Ellison and head of Paramount’s Skydance, has threatened to pull operations out of California if negotiations regarding a lawsuit on a major acquisition don’t progress, considering options like Tennessee, Texas, or Georgia for relocation.
