Oracle is said to be preparing for another round of job cuts as it seeks to bring down the payroll expenses, according to a report. The move comes as the tech giant continues to invest billions of dollars in artificial intelligence infrastructure, according to a Business Insider report.

The reported layoffs come months after Oracle reduced its workforce significantly.

The company has reportedly asked managers to prepare lists of employees who could be affected by the latest round of cuts, one of the people with direct knowledge told Business Insider. The reductions could reach double-digit percentages in some teams, with the company reportedly aiming to complete the workforce changes before its second fiscal quarter begins on September 1.

Oracle has not confirmed the reported layoffs and declined to comment.

Oracle workforce shrinks by 21,000

The latest reported cuts follow a major reduction in Oracle’s workforce during fiscal 2026. The company’s employee count fell by around 21,000, or 13%, during the fiscal year that ended May 31. The workforce fell to 141,000 as of May 31, 2026, from around 162,000 a year earlier, Reuters reported, citing the company’s annual report released Monday.

Oracle also reported $1.84 billion in severance and other restructuring costs during fiscal 2026, compared with $374 million in the previous year.

Billions being spent on AI infrastructure

At the same time, Oracle is significantly increasing its spending on infrastructure to meet the growing demand for AI computing.

The company spent around $55.7 billion on infrastructure in fiscal 2026, including data centres and related investments.

To fund its expansion, Oracle raised around $43 billion through debt and another $5 billion through stock sales during the fiscal year. The company expects to raise an additional $40 billion through debt and stock during the current year.

Cloud business grows as AI demand rises

Oracle’s push into AI comes as demand for computing power continues to increase. The company’s revenue grew 17% in the latest fiscal year, while its cloud infrastructure business recorded 77% growth.

This growth will require significant investment in data centres and equipment, representing a major shift for Oracle, which has traditionally focused on selling database software.

The latest reported layoffs therefore come as Oracle attempts to expand its AI infrastructure while keeping payroll and other expenses under control.