HCM & HRIS

Oracle plans fresh layoffs as AI spending piles up billions in debt: Report

August 12, 2026
www.ETHRWorld.com
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  • Published On Aug 12, 2026 at 12:45 PM IST

Oracles AI expansion fuels debt concerns as credit downgrade risks continue to mount amid spending. />Oracle is reportedly planning another round of job cuts as the cloud giant looks to reduce payroll while spending billions of dollars to build AI infrastructure.<br><br>The potential layoffs could affect double-digit percentages of employees on some teams, Business Insider reported, citing people familiar with the plans and an internal document reviewed by the publication.<br><br><!– PROMOSLOT_M –>Oracle has asked managers to submit lists of employees who could be affected, with the company aiming to reduce its payroll by the start of its second quarter on September 1, according to a person with direct knowledge of the plans cited by Business Insider.<br><br><div class=” article-detail-ad-slot=”” captionrendered=”1″ data-src=”https://etimg.etb2bimg.com/photo/133174641.cms” height=”442″ loading=”eager” src=”https://hr.economictimes.indiatimes.com/images/default.jpg” width=”590″></img></p> </div> <p>The reported layoffs would come just months after Oracle significantly reduced its workforce. The company’s employee count fell by 21,000, or 13%, during the fiscal year ended May 31, 2026, including through layoffs, according to a recent regulatory filing. Oracle currently has around 141,000 employees.</p> <p>Oracle is spending heavily to build data centres and acquire the chips and computing capacity needed to meet surging demand for AI services. At the same time, the company is looking for ways to reduce costs as it balances massive capital expenditure with investor expectations around profitability.</p> <p><b>Also Read: <a href=Oracle, Quantinuum partner to bring quantum computing to cloud

Oracle spent $55.7 billion on infrastructure, including new data centres, during fiscal 2026, according to Business Insider. The company’s cash spending exceeded its cash inflows by $23.7 billion during the year.

To fund its expansion, Oracle raised $43 billion through debt during fiscal 2026, along with another $5 billion through stock sales.

The company expects to raise another $40 billion through a combination of debt and equity during the current fiscal year, according to the report.

The spending reflects Oracle’s aggressive push into AI infrastructure as demand from companies developing and running artificial intelligence models drives demand for cloud computing capacity.

  • Published On Aug 12, 2026 at 12:45 PM IST

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