Oracle starts new round of layoffs as AI spending raises debt: Which departments will be impacted?

Oracle has announced a fresh wave of layoffs, set to commence on September 14, according to three individuals affected and an internal email circulated to Business Insider. The company anticipates that certain teams will see workforce reductions exceeding 10%. The notification email informed affected personnel that their positions had been terminated as part of a broader organizational restructuring, with their last working day marked as immediate, Business Insider reported.

This round of layoffs follows a significant workforce reduction earlier this year, as detailed in a company filing. Oracle's employee count decreased by approximately 21,000 workers, representing a 13% decline, during the fiscal year ending on May 31, 2026. Prior to these latest layoffs, Oracle had around 141,000 employees on its payroll.

The company's strategic focus on AI and data center expansion has led to a significant increase in capital expenditures, with $28.5 billion reported in the first quarter, nearly tripling from the $8.5 billion spent in the same period last year.

Oracle estimates that this latest round of layoffs could impact anywhere between 7,000 to 10,000 positions, though these figures have not been officially confirmed. The company revealed in a regulatory filing that it is increasing its projected job cuts by roughly $700 million, pushing the total cost of its 2026 Restructuring Plan to approximately $2.8 billion. This includes severance payments, contract termination fees, and associated exit costs.