Oracle Begins New Layoff Round as AI Infrastructure Spending Surges
New Delhi — Oracle has begun another round of layoffs as the software company looks to reduce payroll costs while sharply increasing spending on data centers and artificial intelligence infrastructure, according to reports.
The latest cuts are expected to begin Sept. 14 and affect several departments, with some teams reportedly facing workforce reductions of more than 10%.
Employees affected by the restructuring were told their positions had been eliminated, with their final working day effective immediately, according to reports.
The move follows a broader reduction in Oracle’s workforce earlier this year. Company filings show its employee count fell by about 21,000, or 13%, during the fiscal year ended May 31, 2026. Oracle had about 141,000 employees before the latest round of cuts.
The company has not publicly disclosed how many workers are affected. Reports estimating that between 7,000 and 10,000 jobs could be eliminated have not been confirmed by Oracle.
The layoffs come as the company dramatically increases investment in AI-related infrastructure and data-center capacity.
Oracle reported capital expenditures of $28.5 billion in the first quarter, up sharply from $8.5 billion in the same period a year earlier.
The company has maintained its fiscal 2027 capital expenditure guidance of between $90 billion and $95 billion, reflecting the scale of its planned expansion in AI computing and data-center infrastructure.
The combination of workforce reductions and heavy infrastructure spending highlights the balancing act facing major technology companies as they invest aggressively in AI while trying to keep operating costs under control.
For Oracle, the latest cuts come as the company continues an aggressive investment cycle aimed at meeting growing demand for AI computing services. (Source: IANS)
