Oracle raises restructuring costs to $2.8 billion amid AI data-center cash crunch

  • Oracle increased its 2026 Restructuring Plan budget by $700 million.
  • Oracle expects total restructuring costs of $2.8 billion, including $2.1 billion already absorbed.
  • Oracle’s global workforce fell 21,000 to approximately 141,000 employees by late May.

Oracle has raised the estimated cost of its 2026 Restructuring Plan to about $2.8 billion, adding $700 million for severance and anticipated layoffs as the company funds an aggressive artificial-intelligence data-center build-out. Oracle said in a Friday regulatory filing that it had already absorbed roughly $2.1 billion in restructuring costs and expected to take additional actions. Its workforce stood at about 141,000 at the end of May, down 21,000 from a year earlier. The company is also spending heavily on data centers for enterprise customers including OpenAI, with capital expenditures directed toward AI racks, cooling systems and networking equipment. Fiscal first-quarter adjusted revenue reached $19.35 billion and adjusted earnings per share were $1.92, both above Wall Street expectations. Oracle raised its fiscal 2027 adjusted earnings forecast to $8.10 per share and maintained capital expenditure guidance of $90 billion to $95 billion. A filing also disclosed that Chairman Larry Ellison adopted a plan allowing him to sell as many as 50 million Oracle shares through October 24. Oracle shares fell 1.8% on Friday and another 1.3% after hours, leaving them down 22.6% for the year.

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