Oracle prepares for layoffs, sets aside $2.1 billion for restructuring

Oracle is preparing for another round of job cuts in the coming months as it leans more heavily on artificial intelligence (AI) to improve efficiency while preserving cash for its expanding data-centre strategy, according to a report by the Financial Times.

The database company founded by Larry Ellison has set aside an additional $500 million to cover restructuring costs, according to a filing with the US Securities and Exchange Commission (SEC) on Wednesday. The extra allocation raises Oracle’s restructuring funds to $2.1 billion for the current fiscal year, significantly higher than in previous years and potentially enough to support thousands of job reductions.

The development comes shortly after Oracle reported stronger-than-expected results for its fiscal third quarter. The company posted revenues of $17.2 billion, up 22% from a year earlier, beating Wall Street expectations. It has also projected sales of about $90 billion in its next fiscal year.


Despite the strong performance, Financial Times reported that Oracle faces investor pressure over its aggressive spending on large-scale AI data centres. Building and expanding these facilities has required the company to significantly increase borrowing.

So far, Oracle has used around $982 million of the restructuring funds, largely to cover severance costs. That leaves roughly $1.1 billion available for additional workforce reductions before the end of the company’s fiscal year on May 31.

Oracle has also indicated that advances in AI-driven coding tools could reduce the number of developers it needs. In its earnings statement, Oracle told investors that AI technologies are enabling teams to build “more software in less time with fewer people.”

Oracle had already cut more than 3,000 jobs across the United States, Canada, and India between August and September. According to the report, this removed what it described as a “whole middle management layer in sales and marketing.”

With more restructuring funds still available, the company could reduce a similar or even larger number of roles in the coming months. Bloomberg reported last week that further layoffs were expected.

Oracle had about 162,000 full-time employees as of May 31, 2025, according to its annual filing with the SEC.