Oracle continues job cuts amid AI spending surge

Affected employees reportedly received termination notices at around 6:00 am, informing them that their positions had been eliminated with immediate effect.

“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. As a result, today is your last working day,” the message said.

Employees were warned that access to Oracle’s computers, email, voicemail and files would soon be disabled. They were also asked to provide personal email addresses to receive severance information and other documents. Oracle has not disclosed how many positions were affected in the latest round.

The cuts follow a substantial reduction in the company’s workforce during fiscal 2026. According to Oracle’s corporate disclosures, its global headcount fell by approximately 21,000, or 13%, from around 162,000 to 141,000 employees in the year ending May 31.

Oracle spent about $1.84 billion on severance and restructuring-related costs during the period. The company identified AI adoption and deployment among the factors contributing to its restructuring.

At the same time, Oracle is accelerating investment in computing capacity for AI services. Its capital expenditure reached $28.5 billion in the first quarter of fiscal 2027, more than three times the $8.5 billion recorded a year earlier.

The company has maintained its full-year capital expenditure forecast of $90 billion to $95 billion. It also announced more than $30 billion in additional AI cloud contracts during the quarter.

However, the infrastructure expansion weighed on cash flow, with Oracle reporting negative free cash flow of $5.4 billion.

Earlier, Qazinform News Agency reported that Oracle planned to cut approximately 21,000 jobs in 2026 as part of a broader restructuring to support its rapidly expanding artificial intelligence business.