Oracle has started another round of job cuts to reduce payroll costs. The company is taking on tens of billions of dollars in debt to fund its large-scale artificial intelligence infrastructure projects.
The layoffs began on Monday, according to affected employees and an internal email shared with Business Insider.
“After careful consideration of Oracle’s current business needs, we have made the decision to eliminate your role as part of a broader organizational change,” the termination notice stated. It told affected employees that Monday was their last day at work.
Employees from several departments confirmed the layoffs on professional networks and forums like LinkedIn, Blind, and Reddit. Internal documents show that some business units could see staff reductions of more than ten percent.
The layoffs arrive after major job cuts last year. In fiscal year 2026, which ended on May 31, Oracle cut about 21,000 jobs, reducing its workforce by 13 percent. Before the current layoffs, the company had about 141,000 employees worldwide.
These job cuts show the growing financial pressure on Oracle as it invests heavily in building large data centers. The company recently reported $28.5 billion in first-quarter capital spending, which is more than three times the $8.5 billion spent in the same period last year.
Oracle’s management is sticking to its plan to spend $90 billion to $95 billion on capital projects in fiscal 2027. The company is relying on debt to pay for processors, networking equipment, and energy to support growing demand for enterprise AI.
Oracle’s latest earnings report showed steady growth in cloud infrastructure bookings. However, some Wall Street investors doubt whether this growth will produce enough cash flow soon enough to cover the company’s rising debt. An Oracle spokesperson did not respond right away to questions about the size of the layoffs.
