Oracle expanded the size of its planned workforce reductions and updated the bill tied to its "2026 Restructuring Plan." The company now pegs the total at about $2.8 billion, largely severance for employees who are being let go. It has already accrued roughly $2.1 billion related to the plan, and said the $700 million bump reflects "additional actions that we expect to take."
The company is spending heavily to stand up large AI data centers for clients such as OpenAI, and that investment is squeezing cash. Earlier this year, Oracle started eliminating thousands of roles to save money, and Business Insider reported last month that another wave of cuts was being mapped out.
Oracle revealed a fresh trading arrangement covering Chairman Larry Ellison, the holder of roughly 40% of the company. Adopted on June 22, it allows him to sell up to 50 million shares through Oct. 24. At the June 22 close of $175.07, that many shares equated to $8.75 billion, and the stock has slipped 16% from that date through Friday's finish. Separately, Ellison provided substantial funding for his son David's takeover of Paramount Global last year, and also for David Ellison's Paramount Skydance Corp. in its $110 billion pursuit of Warner Bros. Discover Inc.
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CFO Hilary Maxson pointed to "simplification and efficiency actions" as helping trim expenses and protect margins while headcount falls. As of the end of May, Oracle had about 49,000 workers in the US and around 92,000 internationally, which is 21,000 fewer employees than a year earlier. If you hold Oracle or follow big-cap tech, watch how quickly AI infrastructure spending converts to revenue against a backdrop of tighter costs and insider selling permissions.
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