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Oracle is reportedly preparing another round of job cuts this month as it seeks savings to fund its costly AI expansion. Managers have been asked to identify employees for layoffs before September 1, with some teams facing double-digit reductions. The company is taking on tens of billions in debt to build data centres and support AI clients.

Oracle is reportedly gearing up for another significant round of job cuts this month as the software company looks to manage the heavy costs tied to its expansion into artificial intelligence. Oracle has reportedly directed its managers to prepare lists of employees who will be affected. The company is targeting completion of these payroll reductions before its second fiscal quarter begins on September 1, with cuts on certain teams expected to reach double-digit percentages.

Debt-funded AI expansion driving the cuts

According to Business Insider, the planned layoffs reflect the financial balancing act tech companies are undertaking to remain competitive in the AI race. Oracle is currently taking on tens of billions of dollars in debt to build data centers, secure high-demand chips, and support major AI clients including OpenAI, according to the report.

Earlier this year, Oracle had said it expects to raise between $45 billion and $50 billion in 2026 alone to expand its cloud infrastructure capacity. To offset this scale of capital spending while still meeting profitability expectations from investors, the company has been looking for savings elsewhere, largely through workforce reductions.