New York. Oracle has begun another round of layoffs as the US technology company moves to eliminate several positions as part of a broader organisational restructuring. Employees affected by the latest cuts were informed through internal emails that their roles were being eliminated and that their last working day would be the same day.
Under the severance package, affected employees will receive four weeks of base salary along with an additional week of pay for every year they have worked at the company. Employees were also asked to provide a personal email address so that further information related to their separation and severance could be shared with them.
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The company told employees that their positions were being eliminated after considering its current business requirements and broader organisational changes. It also said employees would become eligible for the severance package after completing the required termination documentation.
The internal communication also informed employees that access to their computers, official email accounts, voicemail and files would soon be deactivated. Employees were reminded that they were prohibited from downloading, copying or retaining confidential company information, including by sending it to their personal email accounts.
The latest layoffs come as Oracle is spending heavily on large-scale data centres and computing infrastructure for artificial intelligence. The company has also taken on substantial debt to finance the expansion. With capital expenditure rising sharply, reducing its workforce is being viewed as part of an effort to control operating costs.
During the financial year ended May 31, 2026, Oracle’s workforce declined by about 21,000 employees, representing roughly 13% of its total headcount. The company had approximately 141,000 employees before the latest round of layoffs.
Oracle has also maintained an exceptionally high spending plan for AI infrastructure. Its capital expenditure reached $28.5 billion, or about ₹2.73 lakh crore, in the first quarter, compared with $8.5 billion, or around ₹81,498 crore, a year earlier. For fiscal 2027, the company has retained its capital expenditure forecast at $90 billion to $95 billion, equivalent to roughly ₹8.63 lakh crore to ₹9.11 lakh crore.
The company is continuing to invest heavily in data-centre construction and computing capacity as demand for AI infrastructure grows. However, the scale of this investment has increased its financing and cash-management requirements. Against this backdrop, another round of layoffs has been initiated to reduce employee-related costs.
A new share-sale plan has also been disclosed for Oracle Chairman Larry Ellison. Under the plan adopted on June 22, he can sell up to 50 million shares of the company through October 24. Based on Oracle’s closing share price of $175.07 (₹16,786) on June 22, the shares were worth about $8.75 billion, or approximately ₹83,895 crore. The company’s share price subsequently declined.
Signs of the latest layoffs emerged after employees began sharing their experiences on professional networking platforms and online discussion forums. Some employees said they were suddenly informed that their positions had been eliminated and that their access to the company’s internal systems was subsequently disabled.
The combination of heavy AI infrastructure investment and workforce reductions highlights the changing priorities across the technology sector. Companies are committing enormous amounts of capital to data centres and computing capacity to meet growing AI demand, while simultaneously cutting headcount and controlling traditional operating costs.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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