Oracle is planning a new round of layoffs as it looks to reduce payroll while taking on billions of dollars in debt to fund its massive AI infrastructure buildout, according to people familiar with the plans and an internal document reviewed by Business Insider.
The cuts could reach double-digit percentages on some teams, according to the document. Oracle has asked managers to identify employees who could be affected, with the company aiming to reduce payroll before the start of its second fiscal quarter on September 1, Business Insider reported.
The planned layoffs come after Oracle’s workforce fell by 21,000 employees, or 13%, during the fiscal year ended May 31. The company ended the year with about 141,000 employees. Oracle recorded $1.8 billion in restructuring charges during the year under its 2026 Restructuring Plan, with total charges expected to reach as much as $2.1 billion.
AI infrastructure spending drives costs
The potential layoffs come as Oracle dramatically increases spending on AI infrastructure. The company spent $55.7 billion on capital expenditure in fiscal 2026, up from $21.2 billion a year earlier. Its cash outflow exceeded the cash it generated by $23.7 billion.
To fund the spending, Oracle raised $43 billion through debt and another $5 billion through stock sales during the fiscal year. It expects to raise about $40 billion more through a combination of debt and equity in the current fiscal year.
Cloud growth remains strong
Oracle has defended the spending by pointing to strong demand for AI computing capacity. Revenue rose 17% in fiscal 2026, while its cloud infrastructure business grew 77%.
The company is therefore facing a sharp tradeoff that is demand for its AI infrastructure is surging, but building data centres and buying the equipment needed to support that growth requires enormous amounts of capital.
Oracle shares under pressure
Oracle’s stock is down nearly 26% this year. The decline comes amid wider concerns on Wall Street about the cost of the AI infrastructure boom and the possibility that AI could disrupt traditional software businesses.
Oracle Chairman Larry Ellison has played down concerns about AI-driven disruption to software companies. On an earnings call earlier this year, he said he believed the so-called “SaaSpocalypse” would be a problem for other companies, but not Oracle.