Managers asked to identify roles as Oracle weighs fresh layoffs: Reports

Oracle could be preparing for another round of workforce reductions, according to reports from Business Insider, which cited people familiar with the matter and an internal document. The reports claim managers have been asked to identify employees whose roles could be eliminated as the company seeks to reduce payroll before the start of its second fiscal quarter on September 1.

The reported plans have heightened anxiety among employees, particularly after a major restructuring earlier this year affected thousands of workers across multiple countries.

Oracle has not publicly confirmed the reported layoffs.

Fresh workforce cuts reportedly under consideration

According to Business Insider, managers have been asked to submit lists of employees who could be affected by a new round of job cuts. The report stated some teams could face reductions running into double-digit percentages.

The timing is notable because Oracle's second fiscal quarter begins on September 1. Reports suggest the company is seeking to lower payroll costs before the new quarter starts.

For many employees, the development has revived memories of the company's March restructuring exercise, which affected workers across the United States, India, Canada and Mexico.

March layoffs left a lasting impact

The latest reports come months after Oracle carried out significant workforce reductions.

According to reports cited by multiple media outlets, more than 10,000 employees received layoff notifications during the March cuts. Many workers reportedly received termination emails at around 6 am local time.

Employees who spoke to media organisations at the time said some notifications arrived without prior discussions with managers or human resources teams.

Reports stated affected workers received emails from "Oracle Leadership" informing them their roles had been eliminated. System access was also reportedly revoked on the same day.

The manner and timing of those notifications have become a point of concern among employees now watching developments around September 1.

Workforce shrank by 21,000 employees

Oracle's latest annual disclosures show the scale of workforce changes already underway.

Key workforce figures include:

• Oracle's headcount declined by approximately 21,000 employees during the fiscal year ended May 31.
• The workforce fell from around 162,000 employees to 141,000 employees.
• The reduction represented roughly 13% of the company's workforce.
• Oracle reported $1.8 billion in restructuring costs, compared with $374 million a year earlier.

In its annual filing, Oracle said the adoption of artificial intelligence across parts of its operations had already contributed to workforce reductions and could continue to influence staffing levels in the future.

AI investment continues at an unprecedented scale

The reported layoffs come as Oracle accelerates spending on artificial intelligence infrastructure and cloud capacity.

According to the company's financial disclosures:

• Oracle spent approximately $55.7 billion on infrastructure during the last fiscal year.
• The company generated around $23.7 billion less cash than it spent during the period.
• Oracle raised approximately $43 billion in debt and $5 billion through stock sales.
• The company expects to raise about $40 billion more this year.

The spending reflects Oracle's effort to expand data centre capacity and meet rising demand for AI computing services.

A January estimate from investment firm TD Cowen suggested eliminating between 20,000 and 30,000 jobs could potentially generate $8 billion to $10 billion in additional free cash flow.

Growth remains strong despite restructuring

The reports of potential layoffs stand in contrast to Oracle's recent business performance.

Company disclosures show:

• Revenue increased 17% during the last fiscal year.
• Oracle's cloud infrastructure business grew 77%.
• Quarterly net income rose 95% to $6.13 billion.

Oracle executive Clay Magouyrk has previously highlighted approximately $553 billion in remaining performance obligations, stating demand for AI computing capacity continues to exceed available supply.

Despite the growth, Oracle shares have fallen around 26% this year, amid investor concerns about debt levels and the costs associated with large-scale AI infrastructure expansion.

Employees await clarity

The reported plans remain unconfirmed by Oracle, and no official announcement has been made regarding additional workforce reductions.

However, reports that managers are identifying potentially affected roles have placed employees on alert ahead of September 1. For many workers, the focus is not only on whether layoffs occur, but also on how they may be communicated.

With Oracle balancing aggressive AI investment, expanding cloud infrastructure and ongoing cost management efforts, employees and industry observers will be watching closely for any formal update in the coming weeks.