Oracle Layoffs Reportedly Begin as Company Ramps Up AI Infrastructure Investments

Oracle is said to be carrying out another round of job cuts as the cloud company continues to invest heavily in artificial intelligence (AI) infrastructure. According to a report, the recent layoffs follow a broader reduction in the company's workforce during its 2026 fiscal year. On the one hand, the Oracle has committed to investing billions of dollars, with a fiscal 2027 capital expenditure forecast of up to $95 billion. Meanwhile, it reportedly communicated to affected employees this week, with severance packages offered to reduce costs.

Layoffs at Oracle

Citing people affected by the cuts and the review of an internal notification email, Business Insider reports that the layoffs were expected to begin on Monday. Affected employees reportedly began receiving notifications that their roles were being eliminated as part of a broader organisational change.

The notification email reportedly told employees that their last working day was the day they received the communication. It also said that employees would receive details of their severance and termination arrangements after completing the required paperwork.

According to documents reviewed by the publication, affected employees were offered four weeks of base salary plus one additional week for every year of employment as severance. The documents, however, did not specify a maximum severance amount. The company was previously reported to have capped at 26 weeks of base salary. Under that plan, employees received four weeks for their first year of employment, followed by one additional week for every subsequent year, subject to the 26-week limit.

The latest cuts come after reports last month that Oracle had prepared plans for another round of workforce reductions, even as it continues to aggressively expand its AI infrastructure. The report claims that the company has taken on tens of billions of dollars in debt to finance data centre construction and related infrastructure, betting that demand for AI computing will continue to grow.

Oracle reported $28.5 billion in capital expenditure in its first quarter, up substantially from $8.5 billion a year earlier. The company has reportedly maintained its fiscal 2027 capital expenditure forecast at between $90 billion and $95 billion.

While Oracle has yet to issue a statement in the latest round of layoffs, it previously acknowledged restructuring-related costs as it reshapes its business. In a March filing, the company said costs associated with its fiscal 2026 restructuring plan could reach up to $2.1 billion, largely due to employee severance and related expenses.