Oracle plans to cut more jobs this month, with reductions on some teams reaching double-digit percentages, Business Insider has reported, citing people familiar with the plans and an internal document. The company wants payroll lowered before its second fiscal quarter opens on September 1, and managers have been told to compile lists of affected employees. A new round would extend a year of deep cuts at the company, which shed 21,000 full-time positions, or 13% of its workforce, in the fiscal year that ended May 31 while borrowing $43 billion to fund AI data center construction.
Oracle's 10-K, filed June 22, capped the total expected cost of its Fiscal 2026 Oracle Restructuring Plan at $2.1 billion. The company recorded $1.8 billion of that in fiscal 2026, a 391% increase over the $374 million booked a year earlier, leaving roughly $300 million of headroom under the existing plan. Cuts at the scale Business Insider describes would either need to fit inside that remainder or push Oracle into its second new restructuring plan in three years; the filing describes the prior 2024 plan as substantially complete since May 2025.
Headcount stood at approximately 141,000 full-time employees as of May 31, with around 49,000 of those in the United States. Oracle attributed part of the fiscal 2026 decline to internal AI adoption and told investors that further reductions would follow as deployment grows, having already eliminated roughly 10,000 positions in a single wave earlier this year.
Company capex hit $55.7 billion in the fiscal year 2026, up from $21.2 billion the year before, leaving Oracle $23.7 billion short of covering its spending from the cash it generated. The company raised $43 billion in debt and $5 billion through stock sales during the year, and it expects to secure approximately $40 billion more through borrowing and equity issuance in fiscal 2027. Interest expense climbed to $4.6 billion from $3.6 billion a year earlier, so the annual growth in Oracle's interest bill alone now exceeds half of what it paid in severance and related restructuring charges all year.
Cloud infrastructure revenue grew 77% in fiscal 2026, and total revenue rose 17%, figures Oracle has previously pointed to when defending the spending. The stock is down more than 20% this year, and shareholders sued the company in January over statements about how much it would need to borrow to meet its $300 billion OpenAI commitment.
Oracle declined to comment and hasn’t confirmed the plans.
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