Oracle Reserves $700 Million for Layoffs Yet to Happen as AI Spending Drains Cash
Oracle said the plan now totals about $2.8 billion as it expands layoffs and severance costs amid pressure from its AI data center build-out.
- On Friday, Oracle filed a regulatory update increasing the total cost of its "2026 Restructuring Plan" to about $2.8 billion, up $700 million from prior estimates.
- Oracle is grappling with a cash crunch tied to development of large-scale data centers for artificial intelligence work, including an expensive build-out for customers such as OpenAI.
- During a call with analysts Thursday, Chief Financial Officer Hilary Maxson cited "simplification and efficiency actions" as helping the company reduce costs and protect margins.
- Earlier this year, the company began cutting thousands of jobs to save cash, and Business Insider reported last month that Oracle was drawing up plans for another round of reductions.
- The company also disclosed a new share trading program for Chairman Larry Ellison, who owns about 40% of Oracle's stock, permitting him to sell 50 million shares through Oct. 24.
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Oracle Reserves $700 Million for Layoffs Yet to Happen as AI Spending Drains Cash
Oracle added $700 million to its restructuring plan, lifting the total to $2.8 billion for expected future job cuts. The move reflects heavy AI data center spending that has driven negative cash flow while two-thirds of its workforce sits outside the U.S. and faces strict EU consultation rules. The company has already cut 21,000 roles in the past year.
The American software company Oracle is going to allocate an additional 700 million dollars for the planned reorganization. Previously, the American group had anticipated a restructuring of 2.1 billion dollars. The extra costs are primarily due to severance payments for employees who have to leave the company.
Oracle has set aside $700M more for job cuts it has not made yet
Oracle has raised the cost of its 2026 restructuring by $700M to about $2.8B, covering actions it says it expects to take, and disclosed a plan letting Larry Ellison sell 50 million shares by 24 October. Roughly 92,000 of its 141,000 staff work outside the US, and in the EU collective redundancies require consultation, written […] This story continues at The Next Web
Oracle To Spend Another $700 Million On Job Cuts Amid AI-Led Cash Crunch
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
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