Oracle Corp. has increased its planned job cuts by $700 million, bringing the total estimated cost of the 2026 Restructuring Plan to $2.8 billion. The company disclosed this in a regulatory filing, attributing the move to a cash crunch linked to the development of large-scale AI data centres for clients such as OpenAI. The revised figure includes severance payments to employees, with Oracle having already accrued $2.1 billion in costs.

The financial strain is tied to the high cost of building AI data centres, which has prompted the company to cut thousands of jobs earlier this year. Oracle’s CFO, Hilary Maxson, highlighted 'simplification and efficiency actions' during a call with analysts, noting a reduction of 21,000 workers globally as of the end of May. The company now employs about 49,000 workers in the US and 92,000 internationally.

In addition to restructuring, Oracle disclosed a new share trading program for Chairman Larry Ellison, who owns approximately 40 per cent of the company’s stock. The plan allows Ellison to sell 50 million shares through October 24, with shares valued at $175.07 on June 22, representing a potential $8.75 billion in value. Since then, the shares have declined by 16 per cent.

Ellison has been a key financial backer of his son David’s takeover of Paramount Global and a $110 billion bid for Warner Bros. Discovery by Paramount Skydance Corp. The company’s financial pressures are also linked to its ongoing efforts to save cash, as reported by Bloomberg and Business Insider.

The full extent of the financial impact of the restructuring, including potential effects on operations and employee retention, remains unclear. Further details on the specific job cuts, affected departments, and the long-term implications for Oracle’s strategic direction are yet to be disclosed.