21,000 Jobs Down, $55.7 Billion Spent: What’s Next for Oracle Workforce?

Oracle may be preparing for another round of job cuts, with managers reportedly asked to identify employees who could be affected before September 1.

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The reported plans come as Oracle continues to spend heavily on data centres and cloud infrastructure to meet growing demand for AI-related computing.

• Oracle’s workforce fell from about 162,000 in fiscal 2025 to 141,000 in fiscal 2026.
• Oracle’s capital expenditure surged to $55.7 billion in fiscal 2026 from $21.2 billion in fiscal 2025
• Free cash flow was negative $23.7 billion in fiscal 2026.
• Cloud Infrastructure revenue grew 77% to $18.1 billion in fiscal 2026.
• Oracle’s capital expenditure surged 163% to $55.7 billion in fiscal 2026, from $21.2 billion in 2025

Managers Asked to Identify Employees

Business Insider reported that Oracle managers have been asked to identify employees whose roles could be eliminated ahead of the start of the company’s second fiscal quarter on September 1.

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Some teams could reportedly face reductions in the double-digit percentage range.

Also Read: How AI Is Changing Workforce Skills and Jobs at Infosys

Oracle has not confirmed the reported cuts, and there is no confirmed figure for the number of employees who could be affected. The reported plans should therefore be treated as a possible workforce reduction, rather than a confirmed layoff announcement.

The development follows a significant fall in Oracle’s workforce during fiscal 2026. Oracle reported about 141,000 employees as of May 31, 2026, compared with around 162,000 a year earlier.

The decline of about 21,000 employees should not automatically be described as 21,000 layoffs, as the change in workforce numbers can include different types of employee departures and organisational changes.

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Capital Spending Puts Pressure on Cash Flow

Oracle’s capital expenditure increased sharply in fiscal 2026. The company spent $55.7 billion, compared with $21.2 billion in fiscal 2025, with Oracle saying the increase was primarily due to the expansion of its data centres.

Oracle generated $32 billion in operating cash flow during the year, while capital expenditure resulted in negative free cash flow of about $23.7 billion.

The company also raised $43 billion through debt financing and received $5 billion from the issuance of Mandatory Convertible Preferred Stock.

Oracle expects to raise about $40 billion through debt and equity in fiscal 2027 as it continues expanding its infrastructure.

The company has also said that its net cash outlay for capital expenditure could reach about $70 billion in fiscal 2027.

AI Demand Drives Cloud Growth

The high spending comes as Oracle’s cloud infrastructure business continues to grow. Cloud Infrastructure revenue increased 77% year-on-year to $18.1 billion in fiscal 2026.

Oracle’s Remaining Performance Obligations (RPO) reached $638 billion at the end of fiscal 2026, up 363% from a year earlier. Oracle said much of the increase in the second half of the year came from large-scale AI contracts.

For HR and business leaders, the development shows the pressure created when a company expands infrastructure spending while also managing its workforce and operating costs.

However, Oracle has not said that the reported job cuts are directly linked to its AI or data-centre investments.

For now, the September cuts remain unconfirmed, while Oracle’s financial filings show that its spending on data-centre capacity is expected to remain high as it works to meet customer demand.