Oracle has embarked on a new round of layoffs, as the company continues to cut costs while still investing substantial funds in the AI data center and cloud infrastructure. Affected by the layoff news and the overall decline in AI concept stocks, Oracle's stock price fell by nearly 4% on that day.

Recomposition costs rise to $2.8 billion

As early as March this year, Bloomberg reported that Oracle was preparing to cut thousands of jobs in order to cope with the financial pressures brought about by the expansion of the AI data centers. Now, a new round of layoffs has officially begun, indicating that this adjustment is not a short-term measure.

The company has also recently raised the expected cost of its 2026 restructuring plan by another $700 million, bringing the total to approximately $2.8 billion. The additional expenses are mainly related to severance payments and other costs associated with personnel reductions.

AI The expansion continues...

While carrying out layoffs, Oracle continues to increase its investment in cloud and AI infrastructure. The article points out that the company's current core challenge is to meet the capital expenditure needs brought about by the expansion of AI business on one hand, while maintaining financial discipline on the other.

This means that Oracle's organizational restructuring and capital investment are proceeding in tandem. The layoffs are more of a part of its resource reallocation than a separate personnel action.

Stock price falls by nearly 4%

At the market level, Oracle's stock price decline was not solely influenced by the news of layoffs. Reports mentioned that on that day, AI related stocks were generally sold off, which also added to the pressure on Oracle's stock price.

In addition, Larry Ellison, co-founder of Oracle, canceled the previously announced share sale plan, which also came as a surprise to the market. This change also occurred against the backdrop of stock price fluctuations, but reports did not provide further reasons for it.