Oracle announced a new round of layoffs on August 12, 2026. Managers must finalize lists of affected employees before the second fiscal quarter begins. This follows the elimination of 21,000 full-time positions in the fiscal year ending May 2026.
Heavy spending on AI infrastructure drives the current workforce reductions. Oracle invested $55.7 billion in data centers and chips during fiscal 2026. This expenditure led to a significant funding gap and increased corporate debt.
Oracle formally acknowledged for the first time that AI adoption could reduce its total employee headcount. Shares of Oracle rose 1.2% in after-hours trading following the announcement.