Oracle is preparing for another round of layoffs this month, even as the technology giant continues to pour billions of dollars into artificial intelligence infrastructure, according to a Business Insider report.
The company has reportedly asked managers to identify employees who could be affected by the latest cuts. The layoffs are expected to be carried out before Oracle begins its second fiscal quarter on September 1, with some teams potentially facing reductions in the double digits, the report said.
Oracle cut 21,000 jobs in fiscal 2026
The reported layoffs come months after Oracle significantly reduced its workforce.
According to the report, Oracle's employee count fell by 21,000 during fiscal 2026, representing about 13 per cent of its workforce. The company was left with around 141,000 employees following the reduction.
The latest cuts would add to the workforce reduction as Oracle seeks to control payroll expenses while maintaining its focus on AI and cloud infrastructure.
Oracle has not publicly confirmed the reported fresh layoffs, and neither the company nor its executives have announced details of the planned job cuts.
Billions going into AI infrastructure
The workforce reductions come as Oracle steps up spending to expand its position in the AI market.
Oracle spent $55.7 billion on AI-related infrastructure during fiscal 2026, according to the report. The company also reportedly borrowed $43 billion to help fund its investments and plans to raise another $40 billion through debt and equity during the current fiscal year.
The spending comes amid strong demand for Oracle's cloud services, particularly from companies looking for computing capacity for AI workloads. However, the scale of the investment has also raised concerns among investors, with Oracle's shares declining significantly this year.
Severance costs rise sharply
Oracle's restructuring has also come with a substantial increase in severance and related expenses.
A Reuters report from June said an Oracle filing showed the company spent $1.84 billion on severance and other restructuring-related costs in fiscal 2026. That was significantly higher than the $374 million recorded in the previous fiscal year.
The reported fresh layoffs highlight the pressure on Oracle to balance its expanding AI infrastructure spending with efforts to manage its workforce and overall costs.