Oracle Planning Fresh Layoffs Before September 1 | JQJO

Oracle is preparing for another round of job cuts as the technology giant accelerates cost-cutting while spending billions on artificial intelligence infrastructure .

The company has drawn up plans for fresh layoffs and asked managers to submit lists of employees who could be affected . The cuts could reach double-digit percentages on some teams, according to an internal document reviewed by Business Insider .

Oracle intends to reduce payroll before its second quarter begins on September 1, barely three weeks away . Managers have already been asked to identify affected employees.

The move follows a massive workforce reduction in the fiscal year ending May 31. Oracle's headcount fell by 21,000 employees, or about 13%, from 162,000 to roughly 141,000 . Restructuring costs jumped to $1.8 billion from $374 million a year earlier .

In March, employees received layoff emails at approximately 6 am local time. System access was cut the same morning. Workers in the US, India, Canada and Mexico were affected. Oracle declined to comment on the new plans .

Oracle spent $55.7 billion on infrastructure last fiscal year and burned $23.7 billion more cash than it took in. It raised $43 billion in debt and another $5 billion through stock sales, and expects to raise about $40 billion more this year .

TD Cowen estimated in January that trimming 20,000 to 30,000 roles could free up $8-10 billion in incremental free cash flow .

Despite the layoffs, Oracle's revenue rose 17% last fiscal year. Its cloud infrastructure business grew 77%. Net income jumped 95% to $6.13 billion in a recent quarter. CEO Clay Magouyrk pointed to $553 billion in remaining performance obligations as proof that demand for AI compute is outrunning supply .

Oracle shares are down about 26% this year, hit by anxiety over its debt load and a wider selloff in software on fears AI will eat traditional enterprise tools .

The March cuts left 600 former employees who signed a letter seeking higher severance, extended healthcare, H-1B support and stock acceleration. A survey of 272 laid-off workers found 62% were over 40 and 27% had restricted stock due to vest within 90 days that vanished on the way out. In India, severance broadly followed the N+2 formula with unvested RSUs forfeited .

Oracle's annual filing said the adoption of AI across its operations has already resulted in workforce reductions and may continue to .