Oracle raises spending on workforce cuts by $700 million — NDTV World
Oracle Corp. has increased its estimate of spending on planned workforce reductions by $700 million, to approximately $2.8 billion. The company is facing financial pressure amid the costly deployment of large data centers for artificial intelligence tasks, including for clients such as OpenAI.
Restructuring costs
As NDTV World reports, Oracle said in a regulatory filing that costs under its 2026 restructuring plan will amount to about $2.8 billion. They will mainly consist of payments to laid-off employees.
The company has already accounted for about $2.1 billion in costs under this plan. The additional $700 million is related to further actions Oracle expects to take. Earlier this year, the company began cutting thousands of jobs in an effort to save money.
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During a call with analysts, Oracle Chief Financial Officer Hilary Maxson said that measures to simplify processes and improve efficiency are helping reduce costs and protect margins.
Workforce and Ellison’s shares
As of the end of May, Oracle had about 49,000 employees in the United States and approximately 92,000 outside the country. This is 21,000 fewer than a year earlier.
The company also announced a new stock trading program for Chairman of the Board Larry Ellison, who owns about 40% of Oracle shares. The plan, adopted on June 22, allows Ellison to sell up to 50 million shares by October 24. At the close of trading on June 22, these shares were valued at $8.75 billion, and by the close of trading on Friday, their price had fallen by 16%.
