Oracle has drawn up plans for a new round of layoffs this month, sources say

Oracle, co-founded by Larry Ellison, is planning to lay off employees this month, according to insiders and an internal document. The company has been borrowing billions of dollars to invest in AI infrastructure. The layoffs could potentially impact double-digit percentages of some teams, with the company aiming to reduce payroll by the second quarter of the year, beginning September 1st.

This new round of job cuts follows earlier layoffs in the current fiscal year, which saw a workforce reduction of 21,000 employees, or 13%, leading to a total of around 141,000 employees. Oracle's spending on AI infrastructure reached $55.7 billion in the 2026 fiscal year, with the company spending $23.7 billion more in cash than it earned during the year.

To finance this, Oracle raised $43 billion through debt and $5 billion from stock sales, expecting to raise an additional $40 billion in its current fiscal year. The company attributes this massive capital spending to the increased demand for AI infrastructure, with revenue growing by 17% in the latest fiscal year and the cloud infrastructure business expanding by 77%.

However, this growth necessitates heavy investments in data centers and equipment, marking a significant shift for Oracle, which traditionally focused on selling database software. Despite this, Oracle's stock has dropped nearly 26% this year, reflecting Wall Street's concerns over the skyrocketing infrastructure costs and fears that AI might replace traditional software tools, leading to a broader sell-off of software stocks.