Oracle is expanding its job-cut plans as the tech giant faces rising costs from its push into AI data centres. The company now expects its 2026 restructuring programme to cost about $2.8 billion, with most of the expense going towards severance for employees being laid off, according to a regulatory filing cited by Bloomberg.
Oracle has already recorded around $2.1 billion in charges under the plan. The additional $700 million reflects further cost-cutting measures the company expects to take.
The company has been spending heavily on AI data centres built for customers including OpenAI, putting pressure on its finances. Oracle has already cut thousands of jobs this year as it looks to conserve cash, while Business Insider reported last month that the company was preparing for another round of layoffs.
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Oracle had about 49,000 employees in the US and around 92,000 overseas at the end of May. Its total workforce was down by 21,000 from a year earlier.
Separately, Oracle disclosed a new share trading plan for Chairman Larry Ellison, who owns about 40% of the company's stock.
ALSO READ: Oracle Shares Spike 8% As $30 Billion In AI Contracts Eases Spending Fears
Adopted on June 22, the plan allows Ellison to sell up to 50 million shares through Oct. 24, the filing showed. Oracle shares closed at $175.07 on June 22, valuing the 50-million-share block at $8.75 billion, and have since fallen 16% through Friday's close, according to Bloomberg.
Ellison has been a significant financial backer of his son David's takeover of Paramount Global last year, as well as the $110 billion bid by David Ellison's Paramount Skydance Corp. for Warner Bros. Discovery Inc.
The disclosures come even as Oracle's stock has drawn support from its AI-linked order backlog, with the company recently flagging strong bookings growth tied to cloud infrastructure demand, even as investors weigh the mounting costs of its data centre expansion against near-term margin pressures.
ALSO READ: Oracle Cloud Sales More Than Double, Topping Estimates On AI
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