Oracle shares is preparing another round of layoffs this month as the technology giant looks to reduce payroll while committing billions of dollars to artificial intelligence infrastructure, according to people familiar with the plans and an internal document reviewed by Business Insider.
The proposed cuts could affect double-digit percentages of employees in some teams, according to the document. Managers have reportedly been asked to identify employees who could be affected, with the company aiming to reduce payroll before the start of its second quarter on September 1.
Oracle did not comment on the potential layoffs.
The planned reductions would follow significant workforce cuts earlier this year. Oracle’s employee count fell by approximately 21,000, or 13%, during fiscal 2026, which ended May 31, according to a recent company filing. The company currently employs around 141,000 people.
AI Boom Comes With Heavy Spending
The potential layoffs highlight the financial pressures accompanying Oracle’s aggressive expansion into AI infrastructure. The company is investing heavily in data centers, computing equipment and chips to meet rapidly rising demand for AI-related computing capacity, while simultaneously seeking savings across its operations.
Oracle shares spent $55.7 billion on infrastructure during fiscal 2026, including new data centers. Its cash spending exceeded cash inflows by $23.7 billion during the year, underscoring the scale of its investment program.
To finance the expansion, Oracle raised approximately $43 billion through debt and another $5 billion through stock sales in fiscal 2026. The company expects to raise an additional $40 billion through a combination of debt and equity during the current fiscal year.
Strong AI Demand, Growing Financial Pressure
Oracle has pointed to surging demand as a key reason for its infrastructure investments. Revenue increased 17% in fiscal 2026, while its cloud infrastructure business expanded by 77%, reflecting growing demand for computing resources needed to power AI applications.
However, the rapid expansion represents a major shift for Oracle, whose traditional business was built around database software. The company must now balance significant capital expenditure with investor expectations for sustainable profitability.
Stock Faces Broader AI Concerns
Oracle shares have declined nearly 26% this year, reflecting investor concerns over escalating infrastructure costs and the financial burden of the AI buildout.
The stock may also be affected by broader fears that AI could disrupt traditional software businesses. As Oracle spends heavily to benefit from AI demand, investors are increasingly focused on whether the resulting growth will be sufficient to justify the company’s substantial investment and financing requirements.
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