The vendor previously allocated about $1.6 billion for the restructuring plan.
The Oracle layoffs expected to hit during this fiscal year might be bigger than initially thought, with the vendor now disclosing an extra $500 million to its 2026 restructuring plan, bringing the costs up to $2.1 billion.
The vendor previously allocated about $1.6 billion for the restructuring plan and has already recorded $156 million in restructuring expenses for the quarter ended Feb. 28 and $982 million for the three quarters ended Feb. 28, according to a regulatory filing Wednesday. Feb. 28 marked the end of the third quarter of Oracle’s 2026 fiscal year.
“Any changes to the estimates of executing the 2026 Restructuring Plan will be reflected in our future results of operations,” according to the filing.
[RELATED: Oracle Q3 Earnings: ‘SaaSpocalypse’ Is Coming—Just Not For Oracle, Executives Say]
Oracle Plans Layoff
CRN has reached out to Oracle for comment. Oracle’s NetSuite division is part of CRN’s 2026 Partner Program Guide.
Reports have emerged this month that the Austin, Texas-based database and cloud products giant plans to cut thousands of jobs to help fund its artificial intelligence data center expansion. Multiple news outlets have reported on an estimate of as much as 30,000 Oracle job cuts by investment bank TD Cowen.
Oracle last reported an employee count of about 162,000 in May 2025. About 31 percent of those employees were in research and development, 23 percent were in services, 19 percent were in sales and marketing, and 18 percent were in cloud services and license support operations, according to regulatory filings.
So far, about 36 percent of the costs associated with the restructuring have come from the cloud and software segment. About 13 percent of the costs have hit the services segment and about 4 percent have hit the hardware division, according to Oracle’s latest filing on the restructuring plan. About half was categorized as “other,” defined by Oracle as “employee severance costs not related to our operating segments and certain other restructuring plan costs.”
For the entire $2.1 billion total restructuring costs, once all is said and done, about 37 percent should hit cloud and software and about 19 percent should hit services. About 4 percent will come from the hardware segment. About 40 percent will hit the “other” category.
During Oracle’s latest quarterly earnings call Tuesday, company executives said they are increasingly embracing AI tools internally to revolutionize product development.
Larry Ellison, the company’s chief technology officer who co-founded Oracle in 1977, said on the call that Oracle coding tools allow it to build a comprehensive set of agents for automating entire health care and financial services ecosystems.
Ellison and Oracle co-CEO Mike Sicilia dismissed concerns around a “SaaSpocalypse” of more traditional enterprise software-as-a-service vendors getting disrupted by artificial intelligence upstarts including Claude maker Anthropic and ChatGPT maker OpenAI–with single-focus SaaS vendors more vulnerable to disruption than the database products giant.
“You’ve all heard the thesis or theory that new companies coding quickly using AI will spell the death of SaaS–I don’t agree with that at all,” Sicilia said. “I do think that AI tools and their coding capabilities would be a threat if we weren’t adopting them, but we are. Very rapidly.”
Oracle’s embrace of new AI tools are part of “why we think we’re a disruptor,” Ellison said on the call. “That’s why we think the SaaSpocalypse applies to others.”
Measures Oracle executives shared on the call illustrating its growing AI business include the company delivering more than 1,000 agents in its horizontal back office and industry apps, not including customer-built agents and agents Oracle uses internally. In the quarter, Oracle saw more than 2,000 customers go live with Oracle application projects.
In February, Oracle revealed that it wants to raise $45 billion to $50 billion of gross cash proceeds during the 2026 calendar year using a balanced combination of debt and equity financing. The financing will go to the OCI business and building additional capacity to meet the contracted demand from Advanced Micro Devices (AMD), Nvidia, Facebook parent Meta, ChatGPT maker OpenAI, Elon Musk’s xAI, TikTok and other large OCI customers.
