{
  "id": 6949986,
  "title": "Oracle to spend $700mn more on restructuring costs as it ramps up AI spending",
  "url": "https://urgent.news/2026/09/12/oracle-to-spend-700mn-more-on-restructuring-costs-as-it-ramps-up-ai",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-12T15:54:00.000Z",
  "source": {
    "name": "Gulf Times Business",
    "slug": "gulf-times-business",
    "url": "https://www.gulf-times.com/article/733097/business/oracle-to-spend-700mn-more-on-restructuring-costs-as-it-ramps-up-ai-spending"
  },
  "original_language": "en",
  "account": "Oracle announced a $700 million increase in restructuring costs as part of its plan to reduce expenses and invest heavily in artificial intelligence (AI) services. The company disclosed the higher cost in a regulatory filing after the end of its August quarter, which brings the expected expense of its fiscal 2026 restructuring plan to approximately $2.8 billion. The restructuring plan includes severance, contract terminations, and other exit expenses and is partly driven by the company's push to adopt AI across various functions.\n\nOracle's stock rose by up to 7.8% on Friday following a $26 billion increase in its revenue backlog, which helped alleviate some concerns about the company's debt-fueled spending. However, the stock later closed about 2% lower as analysts pointed out that a recovery in cash flow is still some way off. Oracle's backlog is expected to convert into sales within the next 36 months, and much of the new revenue will not require additional capital as it relies on client prepayments and customers' own chip supply to expand capacity.\n\nDespite Oracle asking customers to partially fund the necessary hardware to ease cash flow pressure, Morningstar analyst Luke Yang stated that the company's cash flow profile is not expected to change in the near future. Oracle's shares have fallen about 23% this year, compared to a 12% rise in the S&P 500 index, as investors question the company's costly AI bets and the viability of its traditional software business in the AI era.\n\nThe company is seeking to raise $40 billion through debt and equity financing in its current fiscal year, which includes a $20 billion stock sale completed in the first quarter. Oracle reported negative free cash flow of $5.40 billion on Thursday, exceeding analysts' average estimate of a cash burn of $9.56 billion. While Oracle's debt load is a valid concern, Evercore analysts noted that the positives in the business have been overshadowed by the negative aspects. The stock trades at 16.86 times its forward earnings estimates, compared to Microsoft's 23.84 multiple and Amazon's 22.58 multiple.",
  "summary": "Oracle said restructuring costs, part of a plan that includes job cuts, will rise about $700mn as the cloud company seeks to rein in costs while spending billions to capitalize on booming demand for a...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "CNA - Business",
        "title": "Oracle to spend $700 million more on restructuring costs as it ramps up AI spending",
        "url": "https://urgent.news/2026/09/11/oracle-to-spend-700-million-more-on-restructuring-costs-as-it-ramps",
        "published": "2026-09-11T09:01:19.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}