Oracle could be heading for another sizeable round of layoffs this month as the technology major looks to reduce expenses amid its aggressive investment
in artificial intelligence. According to a recent report by Business Insider, Oracle has asked managers to prepare lists of employees who could be affected by the upcoming workforce reduction. The company is reportedly targeting the cuts before the start of its second fiscal quarter on September 1. In some teams, the reduction could run into double-digit percentages. Oracle's expected workforce reduction comes as the company commits enormous amounts of capital to expand its AI and cloud infrastructure. The software giant is taking on tens of billions of dollars in debt to finance the construction of data centres, secure high-demand chips and cater to major artificial intelligence customers, including OpenAI. Earlier this year, Oracle said it expected to raise between $45 billion and $50 billion during 2026 to increase its cloud infrastructure capacity. The scale of this spending has put greater pressure on the company to find savings in other areas while maintaining profitability. Oracle Already Cut 21,000 Jobs The reported upcoming layoffs would add to a major reduction in Oracle's employee base over the past year. During fiscal 2026, which ended on May 31, Oracle's global headcount fell by around 21,000 employees, representing a 13 per cent decline. The reduction was attributed to a combination of layoffs, employee attrition and restructuring. The company now has approximately 141,000 full-time employees worldwide. Oracle's approach also reflects a broader shift across the technology sector. As companies pour billions into AI infrastructure, several are reducing staffing in traditional business areas and management roles to redirect resources towards artificial intelligence and cloud computing. Previously, Managing Director and Chief Executive Officer Makarand Padalkar said Oracle Financial had expanded embedded AI capabilities across its banking software portfolio. "Our cloud offerings are transforming banking with embedded AI capabilities and intelligent agents," Padalkar said while announcing the company's FY26 results. According to Padalkar, AI-based tools have helped improve operational efficiency. He said the company had subsequently reorganised its engineering and consulting teams into leaner units while continuing to accelerate product development. At the same time, Chief Financial Officer Avadhut Ketkar pointed to continued strength in the company's order pipeline. "We have a strong deal pipeline with our Remaining Performance Obligations as of March 31, 2026, at Rs 7,761 crore," Ketkar said. The reported layoffs therefore come against a backdrop of Oracle attempting to balance two competing priorities: funding a massive expansion in AI infrastructure while keeping its cost structure aligned with profitability expectations. If implemented, the latest workforce reduction would underscore how the industry's AI spending boom is increasingly reshaping employment across technology companies.
