Oracle (ORCL) Stock Down 26% As Company Plans New Layoffs to Fund AI Buildout
TLDR
- Oracle is planning a new round of layoffs this month, with cuts potentially reaching double-digit percentages on some teams.
- The company wants to reduce payroll before September 1, the start of its second fiscal quarter.
- Oracleโs workforce already shrank by 21,000 employees (13%) in fiscal year ending May 31, 2026.
- Capital expenditure hit $55.7 billion in fiscal 2026, up from $21.2 billion the year prior, leaving a $23.7 billion cash outflow.
- Oracle stock is down nearly 26% year-to-date.
Oracle (ORCL) is planning another round of job cuts this month as it continues to pour money into AI infrastructure, according to a report from Business Insider.
The report, citing people familiar with the plans and an internal document, says cuts could reach double-digit percentages on some teams. Managers have been asked to identify affected employees, with Oracle aiming to reduce its payroll before September 1.
Oracle declined to comment on the report.
ORCL stock is down nearly 26% this year. The stock has been dragged lower by broader Wall Street concern over runaway capital spending across the tech sector, as well as fears that AI could eat into demand for traditional software products.
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