2026 has been a hard year to work in tech, even at companies posting record revenue. Salesforce trimmed its support division nearly in half earlier this year, then quietly cut more jobs in an AI-related shakeup in February. The justification each time is the same: Artificial intelligence made the roles unnecessary.
Oracle is now writing a similar chapter, except its version comes with a much bigger price tag attached. Oracle has drawn up plans for a new round of layoffs in August, according to people familiar with the matter and an internal document viewed by Business Insider on Aug. 11. Managers have been asked to submit lists of affected employees, with the goal of trimming payroll before Oracle's fiscal second quarter opens on Sept. 1.
The cuts could reach double-digits percentage on some teams, according to the same document. Oracle declined to comment on the plans, so it's obvious they are still keeping it internal for now. This isn't Oracle's first pass.
The company shed 21,000 roles, or 13% of its workforce, during the fiscal year that ended May 31. Headcount fell to about 141,000 employees, down from 162,000 a year earlier. Severance and other exit costs jumped to $1.84 billion for the year, up from $374 million the year before, according to the filing.
Oracle itself has acknowledged that AI adoption is a factor behind the reductions, language that rarely shows up so directly in a corporate filing. The reason for the urgency shows up on the other side of the balance sheet. That spending is chasing real demand: Oracle's revenue grew 17% during fiscal 2026, an unusually fast pace for a company built on decades-old database software.
But growth alone hasn't covered the bill. Oracle spent $55.7 billion on infrastructure in fiscal 2026, outspending its cash generation by $23.7 billion. Related: Morgan Stanley says Bloom can withstand an Oracle project delay To cover the gap, Oracle raised $43 billion in debt and another $5 billion through stock sales during the year, and it expects to raise roughly $40 billion more through a mix of debt and equity in the current fiscal year.
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