Oracle celebrates banner quarter with another round of layoffs
Oracle carried out a fresh round of layoffs this week, even as it reported record quarterly revenue driven by its AI datacentre buildout. Staff first realised they had lost their jobs when they were locked out of corporate systems such as email and Slack, with many complaining on LinkedIn that no notice was sent to personal addresses, leaving them scrambling to find out what was happening. It is the latest step in a broader year-long restructuring that has already seen roughly 21,000 jobs disappear as Oracle reshapes its business around AI infrastructure.
A layoff email seen by Business Insider told affected staff their role was being eliminated "as part of a broader organisational change" and that their last working day was that same day, with reports suggesting severance of four weeks' pay plus an extra week per year of service; some of those let go said they had worked at Oracle for two decades. The exact number of job losses in this latest wave is unclear, but Oracle's newest SEC filing shows it has raised its 2026 restructuring budget by a further $700 million (US), on top of an already-expected $2.1 billion, largely for severance and exit costs. That comes despite the company posting $19.3 billion in revenue and $4.76 billion in net income for the quarter to 31 August, up around 30 percent year-on-year — figures that underline how Oracle's AI bet is paying off financially even as it continues cutting staff.
- Oracle laid off more staff despite record quarterly revenue and profit.
- Employees learned of job losses via system lockouts, not personal emails.
- Restructuring costs rise by $700m as AI investment boosts revenue 30%.
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Oracle is a major US technology company best known for business software and databases, but it has been pouring money into building datacentres to support artificial intelligence, a shift that has driven strong financial results. At the same time, it has been steadily cutting its workforce, with tens of thousands of jobs lost over the past year as the company reorganises around this AI push.
The tension at the heart of this story is that these two trends are happening simultaneously: Oracle is making more money than ever, largely thanks to AI-related demand, while also continuing to lay off staff. This has drawn attention partly because of how the job losses have been handled, with some employees reportedly finding out via being locked out of work systems rather than through direct notice.
This matters because it reflects a wider pattern across the technology industry, where companies investing heavily in AI infrastructure are also reducing headcount elsewhere, raising questions about how the benefits of AI-driven growth are being shared between shareholders and workers.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Oracle's leadership would argue that running a healthy, profitable company means constantly reallocating resources towards where growth actually is, and away from roles the business no longer needs, rather than waiting until a downturn forces harsher cuts. A company that only restructures when it is struggling risks bigger, more chaotic layoffs later; making changes from a position of strength, funded by a rising restructuring budget and clear severance terms, is arguably fairer to both departing staff and the wider workforce. They would also note that record revenue reflects a specific, capital-intensive bet on AI infrastructure, and that reshaping headcount to match that strategic shift is standard, responsible stewardship of shareholders' capital, not evidence of mistreatment.
The case against
Critics, including affected staff, would argue that a company posting $19.3 billion in quarterly revenue and rising profit has ample means to treat departing employees, some with two decades of service, with more dignity than a same-day termination and being locked out of email and Slack before any personal notice arrives. They would contend that profitability and mass layoffs happening simultaneously undercuts the usual justification of financial necessity, suggesting the cuts are about maximising margins for AI investment rather than survival, and that a firm of Oracle's size could afford more notice, communication and support for long-serving workers without materially denting its results.