Oracle Corp. has announced a significant increase in its planned job cuts as it faces a cash crunch. This financial pressure is linked to the ongoing development of large-scale data centers aimed at supporting artificial intelligence initiatives. The company’s efforts to expand its infrastructure are proving costly, prompting the need for workforce reductions.
Earlier this year, it began cutting thousands of jobs as part of efforts to save cash, Bloomberg has reported. Business Insider reported last month that the company was drawing up plans for another round of cuts. Because of an expensive build-out of AI data centres for customers like OpenAI, oracle is under financial pressure.
The company also disclosed a new share trading program for Chairman Larry Ellison, who owns about 40 per cent of Oracle’s stock. The plan, which was adopted June 22, permits Ellison to sell 50 million shares through October 24, the company said in a regulatory filing. The shares closed June 22 at $175.07 – a value of $8.75 billion for 50 million shares – and have declined 16 per cent since then through Friday’s close.
The cost of Oracle’s job cuts, which the company lists as “2026 Restructuring Plan,” is now estimated at about $2.8 billion, largely made up of severance payments to fired employees, according to the filing. Oracle has already accrued about $2.1 billion in costs tied to the plan, and the $700 million increase reflects “additional actions that we expect to take,” the company said.
