More Job Cuts at Oracle After 21,000 Layoffs! AI Investment Cited as the Reason
US IT company Oracle is preparing for a second round of layoffs. The company recently laid off a large number of employees globally, and fresh cuts may now be on the horizon. Reports suggest the company aims to reduce payroll costs to further increase investment in artificial intelligence. Let’s look at which departments might be affected.
US IT company Oracle is gearing up for another round of layoffs. According to *Business Insider*, the company could soon initiate this second phase of workforce reductions. The report states that the company has asked managers to identify employees who might be affected by the planned cuts, which are expected to be carried out very soon.
The company’s second quarter begins on September 1, and it is highly likely that these layoffs will take place before then. Some teams could see double-digit percentage cuts in their workforce. The company had already executed a major round of layoffs earlier in the year, resulting in a significant reduction in headcount. Oracle’s workforce has decreased by 21,000—representing approximately 13% of its total employees—during the 2026 fiscal year. Following the previous round of layoffs, the company’s total headcount stands at 141,000.
AI is being cited as a primary reason for these layoffs. The company intends to cut costs to maximize investment in AI, driven by rapidly intensifying competition in the AI market. Oracle is increasing its AI-related spending to strengthen its market position, which is leading to job cuts. The company spent $55.7 billion on AI-related infrastructure in the 2026 fiscal year. To fund these investments, it has taken on $43 billion in debt. Oracle also plans to raise an additional $40 billion through debt and equity in the current fiscal year.
