Oracle Adds USD 700 Million to 2026 Restructuring Plan for Severance and Layoffs

Oracle disclosed that it has expanded its ongoing corporate restructuring plan, adding USD 700 million for employee severance and layoffs. According to a regulatory filing, the total budget for the company's 2026 restructuring plan now stands at about USD 2.8 billion. The filing shows Oracle has already incurred approximately USD 2.1 billion in costs related to workforce reductions, and the additional USD 700 million allocation will fund further layoff expenses. As of the end of May 2026, Oracle employed about 49,000 local staff in the United States and about 92,000 globally, a total of roughly 141,000, down 21,000 from 2025.

Oracle is building large-scale data centers to support enterprise customers, including OpenAI, in running complex generative artificial intelligence models. To maintain liquidity amid costly infrastructure expansion, Oracle initiated preliminary layoff measures earlier in 2026. Oracle's reported results for the first fiscal quarter ended August 31, 2026, showed adjusted revenue of USD 19.35 billion, including software revenue of USD 5.55 billion, cloud infrastructure (IaaS) revenue of USD 7.39 billion, and cloud applications (SaaS) revenue of USD 4.22 billion.

For the second quarter of fiscal 2027, Oracle issued guidance of adjusted earnings per share of USD 1.85 to USD 1.93 and revenue growth of between 30% and 34%. Oracle also raised its full-year fiscal 2027 guidance to adjusted earnings per share of USD 8.10 and revenue of at least USD 90 billion. Chief Financial Officer Hilary Maxson said the spending will go directly toward purchasing products from suppliers that provide AI racks, cooling systems, and networking equipment. Speaking on the earnings call, Hilary Maxson said internal simplification and efficiency measures are central to the company's efforts to control operating costs.