Oracle Corporation (ORCL) is planning another round of job cuts this month as it continues to channel massive investment into AI infrastructure, according to a report from Business Insider.

The report, which cites people familiar with the plans and an internal document, indicates that cuts could reach double-digit percentages on some teams. Managers have reportedly been asked to identify affected employees, with Oracle aiming to reduce its payroll before September 1 — the start of its second fiscal quarter. Oracle declined to comment on the report.

ORCL stock is down nearly 26% year-to-date, dragged lower by broader Wall Street concerns over runaway capital spending across the tech sector, as well as fears that AI could erode demand for traditional software products. Oracle Chairman Larry Ellison pushed back on those concerns during a March earnings call, telling analysts he believes the threat will affect competitors but not Oracle.

Oracle is not alone in facing this tension. Rivals Amazon Web Services, Microsoft Azure, and Google Cloud have all committed tens of billions to expanding data center capacity for AI workloads, and each has navigated investor scrutiny over how quickly that spending will translate into returns. What sets Oracle apart is the pace at which it is scaling its infrastructure footprint relative to its size, positioning itself as an alternative to the established hyperscalers for AI developers seeking computing capacity.

The Cost of Oracle's AI Buildout

Oracle's capital expenditure for fiscal 2026 reached $55.7 billion, more than double the $21.2 billion spent the previous year. That level of spending left the company with a cash outflow of $23.7 billion more than it generated.

To bridge the gap, Oracle raised $43 billion through debt markets and an additional $5 billion through equity issuance in fiscal 2026. The company expects to raise roughly $40 billion more through borrowing and stock sales in the year ahead. Oracle had originally stated in early February that it anticipated raising between $45 billion and $50 billion in 2026 to expand its cloud infrastructure capacity.

Oracle has attributed the spending to surging demand. The company posted 17% revenue growth in fiscal 2026, with its cloud infrastructure segment growing 77%, driven by demand for computing power to support AI workloads. OpenAI is among the customers Oracle is building capacity to serve.

Workforce Already Hit Hard

The latest planned round of cuts follows a year of significant restructuring. Oracle's headcount fell to approximately 141,000 full-time employees as of May 31, 2026, down from 162,000 a year earlier — a reduction of 21,000 people, or 13%.

The company recorded $1.8 billion in restructuring charges for the year under its 2026 Restructuring Plan, with total anticipated charges of up to $2.1 billion. Oracle has stated that the headcount reduction is partly the result of deploying AI technologies internally.

The latest planned cuts indicate that Oracle continues to seek ways to offset the cost of its expansion through payroll savings as it heads into the new fiscal quarter. The combination of aggressive borrowing, equity dilution, and sustained workforce reductions underscores the extent to which Oracle is wagering its future on AI infrastructure demand — and the pressure to demonstrate that the bet will pay off.