Oracle is deepening its workforce cuts, adding $700 million to a restructuring program that now carries an expected total cost of about $2.8 billion (roughly 19.9 billion yuan), according to a report from IThome citing Bloomberg. The additional funds are earmarked for severance payments as the company grapples with the cash demands of building large-scale AI data centers for clients including OpenAI.
The company has so far set aside about $2.1 billion (roughly 14.9 billion yuan) for the plan, which it calls its "2026 restructuring program." The new $700 million (about 5 billion yuan) covers "additional actions expected to be taken," IThome reported. Earlier this year, Oracle planned to cut thousands of jobs to conserve cash, and Business Insider reported last month that a fresh round of layoffs was in the works.
Ellison stock sale plan disclosed
Oracle also revealed a new stock trading plan for Chairman Larry Ellison, who holds about 40% of the company. Under a plan approved on June 22, Ellison may sell up to 50 million Oracle shares before October 24. Based on the June 22 closing price of $175.07, the shares would be worth about $8.75 billion (roughly 62.1 billion yuan). Oracle's stock fell 16% on Friday, IThome noted.
Ellison is also a major financial backer of his son David Ellison, who acquired Paramount Global last year. David Ellison's Skydance is now bidding $110 billion (about 781 billion yuan) for Warner Bros. Discovery.
The cash squeeze stems from the enormous capital required to build AI data centers for customers such as OpenAI. Oracle's CFO, Hillary Maxson, said on an analyst call on September 10 that "simplification and efficiency measures" were helping the company cut costs and maintain profit margins, according to IThome. As of the end of May, Oracle had about 49,000 employees in the U.S. and 92,000 overseas, down 21,000 from a year earlier.
Oracle's net income attributable to shareholders for the first quarter of fiscal 2027 was $4.679 billion, up 60% year over year, IThome reported.
