Tech giant Oracle to slash more jobs to fund AI plans

Another wave of layoffs is looming for shell-shocked Oracle employees as the company prepares its second round of cuts this year while pouring billions into artificial intelligence infrastructure, according to a report.

Some teams could face double-digit percentage job cuts, according to Business Insider. A source with direct knowledge told the news outlet that managers have been asked to submit lists of impacted employees, with the goal of trimming payroll before Q2 begins on Sept. 1.

While the job cuts continue, Oracle is doubling down on its AI investment, having spent $55.7 billion on data centers in fiscal 2026 — a 163% increase from $21.2 billion in fiscal 2025.

Oracle, helmed by CEO Larry Ellison, is looking to cut employee costs as it grapples with roughly $117 billion in high-grade corporate debt, making it the market’s largest non-financial bond issuer, according to Investing.com.

“The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” the company said earlier this year.

Oracle already eliminated 21,000 full-time jobs — roughly 13% of its global workforce — during fiscal 2026, which ended May 31. The company attributed the cuts to restructuring, performance issues, strategic shifts and acquisitions, while spending $1.84 billion on severance and restructuring.

In April, former Oracle employee Nina Lewis accused the tech giant of targeting workers “with outstanding stock options” in layoffs as the company reportedly handed its new CFO a $26 million stock package.

Laid-off employees immediately forfeited their unvested stock, according to Marketwise, though their vested stock remained accessible.

Despite a huge bad debt, Oracle generated US$57 billion in revenue in the financial year 2025, driven by a workforce of 141,000 employees, according to the company’s website. Its extensive infrastructure includes over 18,000 customer support and service specialists fluent in more than 20 languages, alongside 29,000 consulting experts. 

In recent years, Oracle has become one of the most high-profile companies to leave California, moving its headquarters from Silicon Valley to Austin in 2020 and then to Nashville in 2024.

Ellison’s son David Ellison, who runs Paramount Skydance, has threatened to leave the Golden State.

The 43-year-old Paramount CEO told his top lieutenants last week that his company would relocate to Tennessee, Texas, Georgia or another state if Bonta refuses to come to the table in his case opposing Paramount’s $110 billion acquisition of Warner Bros. Discovery.

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