Oracle has reportedly initiated another round of layoffs, marking a fresh wave of job cuts as the company continues its costly expansion into artificial intelligence. According to an internal document, the new redundancies began on Monday, with some teams facing workforce reductions reaching double-digit percentages.

A copy of the termination notice email referenced in the report stated, "After careful consideration of Oracle's current business needs, we have decided to eliminate your position as part of the company's overall organizational restructuring. Therefore, today marks your final day with the company."

This latest round follows earlier cuts made earlier this year. Oracle initially unveiled its restructuring plan at the start of the year, estimating total costs would reach $2.1 billion. By April 2026, the company had already begun laying off staff. In June, alongside its annual report, Oracle disclosed that its workforce had shrunk by 21,000 employees—a 13% reduction—during the fiscal year ending May 31, 2026. These cuts resulted in $1.84 billion in severance and termination benefits.

Prior to these latest layoffs, Oracle employed roughly 141,000 people. The company's quarterly report released in September indicated that management has decided to add approximately $700 million to the reorganization plan "to reflect additional actions we anticipate taking," driven by its massive AI data center construction project. This plan, approved for fiscal 2026, covers employee severance, contract termination fees, and associated exit costs, suggesting the scope of layoffs is expected to widen. Oracle attributed the increases partly to the adoption of AI technology across certain functions.

Within this context, Oracle's co-founder and executive chairman, Larry Ellison, has cancelled plans to sell up to 50 million shares of Oracle stock, a stake valued at roughly $7.5 billion based on last Friday's closing price. On Saturday, Oracle stated that no shares had been sold under the plan and that Ellison has no other intentions to sell company stock. The company did not provide a reason for scrapping the plan.

Oracle has been aggressively investing in AI data center infrastructure, betting on sustained demand for AI capabilities. The company reported capital expenditures of $28.5 billion in the first quarter of fiscal 2027, a sharp increase from $8.5 billion in the same period a year earlier. This fiscal year, Oracle plans to raise about $40 billion through borrowing and equity issuance. In fiscal 2026, capital expenditures reached $55.7 billion, causing cash outflows to exceed revenues by $23.7 billion. Oracle's total debt now stands at $125 billion.

Despite the financial strain, Oracle delivered strong first-quarter results. On September 10, the company posted earnings for the first quarter of fiscal 2027: quarterly revenue climbed 30% year-over-year to $19.3 billion. Under generally accepted accounting principles (GAAP), net income jumped 60% to $4.7 billion, with earnings per share rising 55% to $1.56. Non-GAAP earnings per share came in at $1.92, up 30% year-over-year.

Although the latest earnings report showed some positive signs, including growth in its cloud computing business, investor concerns over the high costs of AI expansion and questions about the future of its legacy software business have weighed on the stock. Oracle shares have fallen approximately 25% year-to-date, closing at $144.72 on September 14, down 3.7% for the session.