Oracle has begun another round of layoffs as the software giant continues to ramp up spending on artificial intelligence infrastructure and data centres. The latest job cuts come after the company reduced its workforce by around 21,000 employees during financial year 2026.
According to a Business Insider report cited by Business Standard, affected employees received termination emails informing them that their positions had been eliminated as part of a broader organisational restructuring. Some employees reportedly had their corporate access and logins disabled before receiving the termination notification.
The number of employees affected by the latest round of layoffs has not been disclosed. Workers impacted in the US were reportedly offered four weeks of base salary, along with an additional week of pay for every year they had worked at Oracle.
The fresh cuts follow a significant reduction in Oracle’s workforce during FY26. The company’s headcount fell by about 13 per cent to roughly 141,000 employees by May 31, 2026, from around 162,000 a year earlier. Oracle has previously linked workforce restructuring to operational changes, including the adoption and integration of AI technologies.
At the same time, Oracle is significantly increasing its investment in AI infrastructure. The company reported capital expenditure of $28.5 billion in the first quarter of fiscal 2027, compared with $8.5 billion during the same period a year earlier. Oracle has retained its full-year capital expenditure guidance of between $90 billion and $95 billion as it expands data-centre capacity to meet growing demand for AI services.
The company is therefore pursuing an aggressive AI infrastructure expansion even as it looks to reduce payroll costs. Oracle’s cloud business has been growing rapidly, with cloud revenue increasing 39 per cent to $34 billion in FY26, while cloud infrastructure revenue rose 77 per cent to $18.1 billion.
The latest layoffs highlight the broader shift taking place across the technology industry, where companies are investing heavily in AI infrastructure while simultaneously reassessing workforce requirements and operating costs.