Oracle Announces New Round of Layoffs Amid AI Infrastructure Spending
Oracle has initiated another round of layoffs in September 2026 as part of ongoing cost-cutting measures to fund its expansion into artificial intelligence infrastructure. The company, which reported a $553 billion backlog of future revenue and raised over $48 billion through debt and equity last fiscal year, continues to reduce headcount despite significant financial commitments. Employees received formal termination notices, with the cuts aligning with previous rounds that contributed to a 13% reduction in workforce from approximately 162,000 to 141,000 over its 2026 fiscal year. Oracle's aggressive investment strategy has led to rising liabilities and negative free cash flow of $23.7 billion for the same period. The company plans to maintain a capital expenditure forecast between $90 billion and $95 billion in fiscal 2027, further straining its balance sheet. These financial pressures have already contributed to an S&P Global credit downgrade and significant stock price volatility, including a steep weekly drop of nearly 19%.
Tickers: $ORCL
Topics: AI investment corporate restructuring layoffs Oracle