Leading tech company Oracle, even as it prepares to invest heavily in its AI-driven cloud business, has begun a fresh round of significant workforce cuts. Having already laid off some employees earlier, the company has now started a second phase of job cuts, sending emails to affected employees early this morning informing them that their positions had been eliminated. The emails reportedly stated that the decision was part of the company’s restructuring plan and broader organizational changes. Business Insider confirmed the layoffs after speaking with three affected employees and reviewing internally circulated communications, while some of those who recently lost their jobs shared their frustration on platforms including LinkedIn, Reddit, and Blind.
This is not the first round of layoffs at Oracle this year. In the fiscal year ended May 31, 2026, the company laid off around 21,000 employees worldwide, roughly 13 percent of its total workforce. Following these cuts, the company’s total headcount stood at around 1.41 lakh by the end of the fiscal year, down from approximately 1.62 lakh the previous year. Oracle stated that it spent approximately $1.84 billion in fiscal 2026 on layoffs, restructuring, and other exit-related costs, compared to $374 million the previous year. The company had previously indicated that adopting and implementing AI in its day-to-day operations was among the reasons behind the reduction in headcount.
Beyond the layoffs, Oracle’s restructuring program is also placing a significant financial burden on the company. According to details revealed last week, the company raised its estimated total restructuring expenditure by a further $700 million, bringing the total projected cost of its fiscal 2026 restructuring plan to approximately $2.8 billion. This includes severance payments to laid-off employees, contract termination fees, and other exit-related costs. Oracle disclosed that as of August 31, it had already recorded approximately $2.1 billion in expenses under this plan, adding the additional $700 million to account for further restructuring measures still to come. Notably, the latest round of job cuts began just days after this disclosure.
The latest layoffs are not entirely unexpected. A report by India Today Digital last month had revealed that Oracle, even as it takes on substantial debt to expand its AI infrastructure, was preparing for another round of layoffs to reduce its employee compensation costs. The latest developments make clear that part of that plan has now been put into action. The internal email is understood to have stated that the positions were eliminated as part of broader organizational changes, with reports indicating that the affected employees’ last working day was set as the same day they received the notification.