Oracle has increased its restructuring budget for the 2026 fiscal year by $700 million, bringing the total estimated cost of the program to approximately $2.8 billion. The plan covers workforce reductions, severance packages, and contract terminations, with some initiatives directly linked to the integration of artificial intelligence into corporate operations.
The company is simultaneously investing billions into data centers and cloud infrastructure to support AI development. This expansion contributed to a $26 billion increase in the company's remaining performance obligations. Following the report, Oracle shares initially rose by 7.8% on Friday, though they later closed with a 2% decline as analysts expressed caution regarding cash flow recovery.
Reports indicate that the scale of layoffs has expanded due to capital constraints caused by the construction of large-scale AI data centers. Additionally, chairman Larry Ellison has secured authorization to sell up to 50 million shares of the company. This trading plan was adopted on June 22 and remains in effect until October 24.
