Oracle Quietly Raises Restructuring Fund By $500M: Big Layoff Wave Incoming?

• Oracle now sees fiscal 2026 restructuring expenses of $2.1 billion, an SEC filing shows.
• The cloud company laid off over 3,000 workers in August-September 2025.
• ORCL stock rose 9.2% on Wednesday after a blowout earnings report.

Oracle Corp. has quietly increased a pool earmarked for restructuring-related expenses by $500 million, the company’s latest filings show, signaling that a widely speculated layoff drive may be on the horizon.

The company’s 10-Q, filed with the Securities and Exchange Commission on Wednesday, estimated that Oracle’s total restructuring costs for the fiscal year ending May 2026 would be $2.1 billion. The figure, which is primarily related to employee severance costs, was $1.6 billion in December last year.

The company has spent $982 million of that, leaving it with $1.1 billion. Oracle laid off over 3,000 workers between August and September last year. Thousands of more cuts are in the pipeline, Bloomberg reported last week, as the cloud giant faces investor pressure to trim costs amid its significant, debt-fueled buildup of new data centers. 

Oracle Employees Anxious

In a report on Thursday, the Financial Times said employees were anxious about layoffs. In an all-hands meeting the previous day, Co-CEOs Clay Magouyrk and Mike Sicilia did not touch upon the issue but told staff that AI could automate many coding functions and mock up products faster.

Oracle reported a blowout quarter, showing 22% revenue growth and a staggering 324% increase in remaining performance obligations (future orders yet to be booked as revenue), allaying concerns about its surging debt for the time being.

ORCL Jumps After Earnings But Remains Under Pressure 

Oracle shares gained 9.2% on Thursday following the report, but remain 16.3% down year-to-date. On Stocktwits, retail sentiment remained ‘extremely bullish’ territory as premarket trading opened on Thursday, after a string of brokerages raised their price targets on ORCL’s stock.

Notably, TD Cowen said as early as January that Oracle could be looking to cut up to 30,000 jobs and sell its health tech unit, Cerner, to ease its AI datacenter financing challenges.

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