Oracle cuts over 2,500 in second layoff wave of 2026

Oracle ↘ 3.11% has carried out a second major round of layoffs this year, with more than 2,500 workers affected globally as the company funnels tens of billions of dollars into artificial intelligence infrastructure while tightening costs elsewhere.

The cuts come less than six months after the Austin-based technology giant began eliminating positions across several parts of the country earlier in 2026. A leaked workforce document obtained by Business Insider identified 546 employees in Oracle's America Cloud Infrastructure organization who were laid off and eligible for severance, representing about 7.6 percent of the 7,185 workers in that unit. Oracle has not publicly disclosed the full number of employees affected in the latest round.thestreet+1

Cloud Division and Software Roles Hit Hard

Software development positions made up roughly 17 percent of the jobs listed in the leaked document, with software developer III the single hardest-hit role at 57 terminations. Program managers, senior infrastructure engineers, and data-center support staff were also prominently affected. The data-center support services division, responsible for maintenance and technical assistance, accounted for 41 of the terminations, including a vice president and two senior directors.firstpost

The reductions come as technology companies face growing questions about how AI coding tools could reshape engineering work.firstpost

A Year of Deep Workforce Reductions

The latest layoffs follow an already steep reduction. Oracle had 141,000 employees before this round and said it had already eliminated 21,000 positions during its 2026 fiscal year, which ended May 31. The cumulative cuts represent roughly 13 percent of the company's workforce over the past fiscal year.statesman+1

India appears to have borne a disproportionate share of the pain. According to a Blind survey of India-based tech professionals reported by The Hindu BusinessLine, Oracle's latest September round has reportedly affected up to 3,000 employees in India out of more than 6,000 globally, with one Oracle professional on the platform saying India was "hired for its cost advantage and later cut first because it was 'cheaper and legally quieter'".thehindubusinessline

AI Spending Drives the Restructuring

The workforce reductions are unfolding alongside one of Oracle's most expensive expansion programs. The company expects to spend between $90 billion and $95 billion this year on new data-center capacity to meet demand for AI computing, financed in part through substantial borrowing. Eligible workers receive a severance package starting at four weeks of base pay for the first completed year, with one additional week per subsequent year, capped at 26 weeks.firstpost

The broader ripple effects are already drawing attention from policymakers. The Texas Senate Economic Development Committee held a hearing on Tuesday to discuss how best to prepare the state's workforce for AI disruption, with Oracle's layoffs cited as a prominent local example. "AI literacy is becoming a basic workforce skill, much like digital literacy has been," testified Rob Cohan of Accenture ↘ 0.11%, urging the state to integrate AI training across education and apprenticeship programs.statesman