Oracle May Cut More Jobs in September After 21,000 Layoffs in FY26

Oracle could be preparing for another round of layoffs in September, with managers reportedly asked to identify employees whose roles could be eliminated before the start of the company's second fiscal quarter. According to a report by Business Insider, some teams could face cuts running into double-digit percentages. Oracle has not publicly confirmed the reported plans, which would come after the company eliminated approximately 21,000 jobs during fiscal 2026.

Oracle ended fiscal 2026 with around 141,000 full-time employees, representing a decline of roughly 13% from the previous year. The reported workforce reductions indicate that the company is continuing to restructure its operations while directing significant resources towards its cloud and artificial intelligence businesses. If implemented, the latest cuts would reportedly take place before September 1, when Oracle's second fiscal quarter begins.

The potential layoffs come as Oracle makes a major financial commitment to expanding its AI infrastructure. The company spent approximately $55.7 billion on capital expenditures during fiscal 2026, largely to increase its cloud infrastructure capacity and meet growing demand for AI computing. Oracle also raised about $43 billion through debt financing and expects to raise another $40 billion through debt and equity during fiscal 2027 as it seeks to fund its expansion.

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Oracle's cloud business has recorded strong growth alongside the increased spending. Total cloud revenue rose 39% year over year during fiscal 2026, while cloud infrastructure revenue increased 77%. The performance reflects growing demand for computing capacity linked to artificial intelligence and other cloud-based workloads. However, the scale of the investment has also drawn attention from investors because Oracle's heavy capital expenditure has contributed to negative free cash flow.

The company's restructuring costs also increased significantly during fiscal 2026. Oracle reported approximately $1.84 billion in restructuring and other expenses, compared with $374 million a year earlier. The expenses included employee severance costs associated with workforce reductions. The sharp increase highlights the financial impact of the company's ongoing restructuring as it attempts to adjust its workforce and operating structure.

The reported September layoffs underline the challenge facing Oracle as it tries to balance aggressive investment in AI infrastructure with cost control. While demand for cloud and AI services remains a major growth opportunity, the company is simultaneously reducing its workforce and increasing financing to support expansion. Until Oracle formally confirms the reported plans, the scale and timing of any additional layoffs remain uncertain.

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