Oracel announces fresh round of job cuts citing debts due to AI infrastructure development

“Today is your last day”, read the morning mail for an Oracle employee as the company embarked on its lay off journey. Reportedly, the mail also communicated to affected employees this week, with severance packages offered to reduce costs.communicated to affected employees this week, with severance packages offered to reduce costs.

As per reports, the recent layoffs follow a broader reduction in the company’s workforce during its 2026 fiscal year.The latest job cuts comes amids the company’ massive spending spree kn AI and cloud infrastructure. There has been no official statement on the number of lay offs.

However the termination email told the employees that their role was being eliminated as a part of a “broader organisational change”. It did not provide an individual explanation for why a particular employee was being let go.Employees were also told that their access to Oracle’s computers, email, voicemail and files would soon be deactivated. They were asked to provide a personal email address to receive information about severance and other separation-related documents.

As per documents accessed by media houses, affected employees were offered four weeks of base salary plus one additional week for every year of employment as severance. The documents, however, did not specify the maximum severance amount. The company previously reported to have capped at 26 weeks of base salary. Under that plan, employees received four weeks for their first year of employment, followed by one additional week for every subsequent year, subject to a 26-week limit.

If reports are to be believed, the company has taken tens and billions of dollars of debt to finance data center construction and related infrastructure, betting that demand for AI computing will continue to grow. Oracle reported $28.5 billion in capital expenditure in its first quarter, up substantially by $8.5 billion a year earlier.

The company has reportedly maintained its fiscal 2027 capital expenditure forecast between $90 billion and $95 billion. In a March filing, the company said costs associated with its fiscal 2026 restructuring plan could reach up to $2.1 billion, largely due to employee severance and related expenses.