Oracle Plans Another Round of Job Cuts by September 1 Amid AI Spending Squeeze
ORCL sits 33% above its 52-week low of $114.5.
Summary
Oracle is preparing another round of layoffs, with managers asked to identify employees for cuts by September 1, according to Business Insider. Some teams could see double-digit percentage reductions. This follows the 21,000 jobs (13% of workforce) already eliminated in the past year, disclosed in the June 10-K. The cuts are framed as cost control amid heavy AI infrastructure spending that drove capex up 162% to $55.7 billion and negative free cash flow of $23.7 billion. The company plans to raise $40 billion in fiscal 2027, including a $20 billion ATM equity offering. The stock is down 21.68% year-to-date, reflecting investor concern over the spending trajectory. Watch for official confirmation and the scale of cuts when the September 1 deadline approaches.
At the time of this announcement, ORCL was trading at $152.60 on NYSE in the Technology sector, with a market capitalization of approximately $441.5B. The 52-week trading range was $114.50 to $345.72. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.