Oracle Reportedly Starts Fresh Layoffs While Spending Billions On AI Infrastructure

According to a Business Insider report, the latest job cuts are expected to begin on Monday.

• Layoff notices reviewed by Business Insider told affected employees that their roles were being eliminated as part of a “broader organizational change.”
• An internal document cited by Business Insider indicated that reductions could reach double-digit percentages on some teams.
• The latest cuts follow a 21,000-employee reduction at Oracle, when the company's workforce fell by 13%.

Oracle (ORCL) shares fell in morning trading Monday amid broader market weakness after Business Insider reported that the company had begun a fresh round of layoffs.

The cuts had been expected to begin Monday, the report stated, citing a source with knowledge of the matter. Business Insider also reviewed copies of layoff notification emails sent to affected employees.

"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," the emails stated. "As a result, today is your last working day."

The report comes after it was previously reported that Oracle had drawn up plans for another round of job cuts as the company works to reduce payroll. The planned reductions could reportedly reach double-digit percentages on some teams, according to an internal document, the report said.

ORCL stock fell  as much as 4% in morning trade and was among the top trending tickers on Stocktwits at the time fo writing. Retail sentiment around the shares remained in ‘extremely bullish’ territory over the past day, accompanied by ‘extremely high’ levels of chatter. 

ORCL’s Latest Layoffs Add To Workforce Reductions Over Past Year

The latest cuts would add to Oracle's workforce reductions over the past year. The company's workforce declined by 21,000 employees, representing around 13% of Oracle’s total, as of May 31.

According to the company’s latest earnings report, Oracle currently has around 141,000 employees.

The layoffs also come as Oracle continues to ramp up its AI spending. Oracle reported $28.5 billion in capital expenditures in its first quarter, up from $8.5 billion a year earlier. The company has maintained its fiscal 2027 capital expenditure forecast at between $90 billion and $95 billion.

Wall Street Remains Divided On The Outlook

Last week, after Oracle’s earnings, Barclays maintained an ‘Overweight’ rating on Oracle, saying the company's growth has reached an inflection point that could lead to further acceleration. 

Stifel took a more cautious view of the stock's valuation, cutting its price target to $200 from $220 while maintaining a ‘Buy’ rating. Analyst Brad Reback called Oracle's latest results “a strong quarter” and pointed to management's decision to raise its fiscal 2027 revenue guidance to more than $90 billion.

That outlook implies roughly 120% growth for Oracle Cloud Infrastructure (OCI), according to Stifel. However, the firm also flagged that the spending required to support that growth remains a key concern. 

Stifel expects Oracle's gross margins to come under pressure in the near term, although Reback expects that impact could eventually be offset by faster OCI growth and greater operating-expense efficiencies.

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