Oracle Reportedly Initiates New Layoffs Amid AI Spending Push

Oracle Corp. (NYSE:ORCL) has reportedly begun a new round of layoffs as the company works to reduce payroll costs while investing heavily in its artificial intelligence infrastructure, according to a Business Insider report citing affected employees.

The job cuts are said to have started on Monday. The move aligns with previous reporting from Business Insider last month, which indicated that Oracle was preparing for reductions that could reach double-digit percentages in some teams, as detailed in an internal document. An Oracle spokesperson did not immediately respond to requests for comment on the matter.

Context of the Restructuring

This latest round of workforce reductions follows significant cuts in the previous fiscal year. According to a recent company filing, Oracle's headcount decreased by 21,000 employees, or 13%, in the fiscal year that concluded on May 31, 2026. Prior to this new round, the company employed approximately 141,000 people.

The restructuring comes as Oracle takes on billions in debt to finance the expansion of its AI and cloud infrastructure, a capital-intensive strategy aimed at competing in the rapidly growing AI market. The layoffs suggest a strategic reallocation of capital from personnel expenses to infrastructure investment.

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Ellison Cancels Stock Sale Plan

In a separate development, Oracle disclosed in a September 11 filing that Chairman and CTO Larry Ellison canceled a pre-arranged trading plan. The 10b5-1 plan, established on June 22, 2026, would have permitted the sale of up to 50 million Oracle shares, valued at approximately $7.5 billion.

Oracle confirmed that no shares were sold under the plan before its termination. The company has not publicly stated a reason for the cancellation, and no alternative sale plan has been disclosed. This move is of interest to investors who closely monitor the trading activities of key executives.