Oracle raises restructuring budget by $700 million to $2.8 billion

September 12, 2026 at 02:04 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Oracle raised its restructuring budget by $700 million to $2.8 billion, citing high costs of building AI data centers. The company has already cut 21,000 jobs this year, reducing its workforce to 49,000 in the U.S. and 92,000 abroad. Chairman Larry Ellison was authorized to sell up to 50 million shares worth about $8.75 billion by October 24.

Key Facts

Oracle's restructuring budget rose by $700 million to $2.8 billion, according to Bloomberg.
The company reduced its workforce by 21,000 employees by the end of May compared to the same period last year.
Oracle employed 49,000 people in the U.S. and 92,000 abroad after the cuts.
Chairman Larry Ellison may sell up to 50 million shares, valued at about $8.75 billion, by October 24.
Oracle's stock price fell 16% from $175.07 on June 22 to the close of trading last Friday.

Restructuring Costs

Oracle increased its restructuring budget by $700 million, bringing the total to $2.8 billion. The company attributed the increase to the high cost of building AI data centers for clients such as OpenAI. Chief Financial Officer Hilary Maxson said the restructuring measures are necessary to protect margins and are part of the official 2026 plan. Most of the $2.8 billion will be used for severance payments.

Workforce Reduction

Oracle cut 21,000 jobs by the end of May compared to the same period last year. The company's headcount fell to 49,000 in the U.S. and 92,000 abroad. The layoffs were part of cost-saving measures amid financial pressure from AI infrastructure investments.

Ellison Share Sale

Oracle authorized Chairman Larry Ellison to sell up to 50 million shares, worth about $8.75 billion, by October 24. The stock closed at $175.07 on June 22 and has since fallen 16% through last Friday. Ellison, who owns 40% of Oracle, is also a key investor in his son David Ellison's deals, including the acquisition of Paramount Global and a $110 billion bid for Warner Bros. Discovery.