Oracle plans more layoffs weeks after spending most of its $2.1 billion restructuring budget, report claims — some teams face double-digit percentage reductions, 21,000 full-time positions already eliminated

Oracle is set to make additional layoffs this month, with some teams facing reductions of double-digit percentages, according to Business Insider's report citing sources familiar with the company's plans. The cuts come as Oracle seeks to reduce its payroll before the second fiscal quarter begins on September 1. Managers have been instructed to create lists of employees impacted by the cuts.

This move marks the continuation of a year-long series of deep cuts at the company. In the fiscal year that concluded on May 31, Oracle reduced its workforce by 21,000 full-time positions, which represents 13% of its total workforce. During this period, Oracle also took on $43 billion in debt to finance AI data center construction.

The restructuring plan, which has a total expected cost of $2.1 billion, was outlined in Oracle's 10-K filing on June 22. Of this amount, $1.8 billion was recorded in fiscal 2026, marking a 391% increase compared to the $374 million spent the previous year. This leaves around $300 million of headroom within the existing plan.

If the reported cuts are implemented, Oracle may find itself needing to initiate a second restructuring plan in less than three years. The previous restructuring plan, announced in 2024 and largely completed by May 2025, is described as substantially complete.

As of May 31, Oracle employed approximately 141,000 full-time employees, with around 49,000 of these positions located in the United States. Oracle cited internal AI adoption as contributing to the fiscal 2026 decline and indicated that additional reductions would follow as AI deployment increases. The company eliminated about 10,000 positions in a single wave earlier this year.

Oracle's capital expenditure (capex) for fiscal year 2026 reached $55.7 billion, up from $21.2 billion the previous year. This leaves the company $23.7 billion short of covering its spending from the cash it generated. To bridge this gap, Oracle raised $43 billion in debt and $5 billion through stock sales during the year, and anticipates securing around $40 billion more through borrowing and equity issuance in fiscal 2027.

The company's interest expense increased to $4.6 billion from $3.6 billion a year earlier, which now exceeds half of what it paid in severance and related restructuring charges throughout the year. Cloud infrastructure revenue grew by 77% in fiscal 2026, while total revenue increased by 17%. These figures were previously presented by Oracle to support its spending justifications.

Despite these investments, Oracle's stock has declined by more than 20% this year. Shareholders have also filed a lawsuit against the company in January, challenging statements made about the extent of borrowing required to meet Oracle's $300 billion OpenAI commitment. Oracle has declined to comment on the reported layoffs and has not confirmed the plans.