Oracle begins fresh layoffs as AI infrastructure spending keeps rising

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Oracle has begun another round of layoffs as the software giant continues to ramp up spending on artificial intelligence infrastructure, Business Insider reported. The layoffs, expected to begin on Monday, follow Oracle's reduction of 21,000 jobs in the financial year 2026 ending May 31.

Employees were told in a termination email that their roles had been eliminated as part of a “broader organisational change” and that the day they received the email would be their last working day. "After careful consideration of Oracle's current business needs, we have made the decision to eliminate your role as part of a broader organisational change," copies of the layoff notification email viewed by Business Insider stated. "As a result, today is your last working day."

The report said workers saw their corporate logins and other access disabled before receiving the notification.

The employees were reportedly offered four weeks of base salary plus one week for each year of employment.

The latest cuts come after Oracle’s workforce fell by 13 per cent during FY26 to about 141,000 employees before the current round. Business Insider had reported last month that Oracle was preparing further job cuts to reduce payroll as it takes on billions of dollars of debt to fund its artificial intelligence infrastructure. The publication said planned cuts were expected to reach double-digit percentages in some teams.

Oracle is simultaneously stepping up investment in AI infrastructure. The company reported $28.5 billion in capital expenditure in the first quarter, up from $8.5 billion a year earlier, and retained its FY27 capital expenditure forecast of $90 billion to $95 billion. Oracle has been building data centres to meet expected demand for AI services.

According to a Reuters report, Oracle’s restructuring costs are expected to rise by about $700 million, taking the estimated cost of its FY26 restructuring plan to roughly $2.8 billion. The publication linked the increase partly to the adoption of AI across some functions.

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