Oracle begins fresh layoffs as AI data-centre spending surges

Oracle begins fresh layoff round as AI infrastructure spending soars

New Delhi, Sep 14

The latest job cuts are expected to begin on September 14 and affect multiple departments, with some teams facing workforce reductions of more than 10 per cent. According to reports, employees being let go were informed that their positions had been eliminated as part of a broader organisational restructuring, with their final working day effective immediately.

The latest layoffs come after a significant reduction in Oracle's workforce earlier this year. Company filings show that Oracle's employee count declined by around 21,000, or 13 per cent, during the fiscal year ended May 31, 2026. The company had approximately 141,000 employees before the latest round of cuts.

Oracle has not publicly disclosed how many employees are being affected by the latest layoffs. Reports estimating that between 7,000 and 10,000 positions could be eliminated have not been confirmed by the company.

The workforce reductions come as Oracle is dramatically increasing spending on artificial intelligence infrastructure. The company is taking on tens of billions of dollars in debt to finance data-centre expansion as demand for AI computing capacity continues to rise.

Oracle reported capital expenditure of $28.5 billion in the first quarter, sharply higher than $8.5 billion during the same period a year earlier. The company has also retained its fiscal 2027 capital expenditure guidance of between $90 billion and $95 billion, underscoring the scale of its planned investment in AI and data-centre infrastructure.

The contrasting moves highlight the pressure facing large technology companies as they seek to fund the rapid expansion of AI infrastructure while maintaining control over operating costs. For Oracle, the latest workforce reduction comes alongside an aggressive investment cycle aimed at capturing growing demand for AI computing services.

— IANS