Oracle is expanding its layoffs plan by $700 million as AI data center costs mount

Oracle has announced an expanded 2026 layoff plan, costing an additional $700 million, bringing the total estimated expense to about $2.8 billion. The company is investing heavily in AI data centers, which is driving up its capital expenditures. Oracle recorded $2.1 billion in charges against its restructuring plan as of August 31.

The expansion comes as Oracle's capital spending increased to $28.5 billion in the quarter ended August 31, compared to $8.5 billion in the corresponding period a year earlier. Despite the financial strain, Oracle reported a revenue increase of $19.3 billion for the first quarter, with cloud revenues making up 60% of total revenue. The layoffs, set to begin on September 1, affect some teams with double-digit cuts.