Oracle Layoffs 2026: Tech giant Oracle is reportedly gearing up for one of the largest restructuring moves in its history. If the reports are true, the company could lay off 20,000 to 30,000 employees globally as it struggles to manage rising costs linked to its massive AI infrastructure push.
According to a report by Bloomberg, the layoffs could begin as early as this month and may affect multiple business units across the company. The cuts are expected to be part of a larger effort to stabilise finances as Oracle invests billions into building AI data centres and cloud infrastructure.
Layoffs could cost up to $1.6 billion
Oracle had earlier disclosed in a regulatory filing that the restructuring plan could cost up to $1.6 billion in the current fiscal year. It can cost this much due to severance payments to the fired employees and organisational restructuring expenses.
The company had around 162,000 employees worldwide as of May 2025, and while the exact number of job cuts is still under discussion, analysts estimate the layoffs could free up $10 billion in cash flow.
Some of the roles Oracle expects will become redundant as AI tools increasingly automate certain functions.
AI expansion driving financial pressure
Much of the financial crisis reportedly stems from the company's plan to transform itself into a major AI cloud competitor to giants Amazon and Microsoft. The push is being led by Oracle chairman Larry Ellison, who is betting heavily on AI infrastructure and cloud services.
A key part of this strategy is Oracle's massive partnership with OpenAI, which analysts estimate could require up to $156 billion in capital spending and around three million GPUs for AI computing.
To finance the expansion, Oracle has reportedly taken on large amounts of new debt. The company is said to have borrowed $58 billion in just two months, including $38 billion for data centre projects in Texas and Wisconsin and another $20 billion for a campus in New Mexico.
This has pushed Oracle's total debt beyond $100 billion.