Oracle’s restructuring bill could reach roughly US$2.8 billion after the company added about US$700 million to the plan.
In a regulatory filing, Oracle said the estimated cost stood at up to US$2.1 billion as of 31 August 2026.
Management expanded the programme after the quarter ended to cover additional measures.
Oracle did not disclose what those measures would involve. The plan covers employee severance, contract terminations and other exit costs aimed at improving operational efficiency.
It also includes the adoption and integration of artificial intelligence (AI) across certain functions.
The company recorded US$167 million in expenses linked to the programme during the three months ended 31 August 2026, compared with US$415 million a year earlier.
Costs recorded across its business segments primarily related to employee severance.
The disclosure follows a period of workforce reductions. Oracle’s headcount fell by 21,000 employees, or 13%, during its 2026 financial year. It had about 141,000 employees at the end of May.
Further job cuts were reportedly under consideration in August as Oracle sought to manage costs while expanding its cloud and AI infrastructure.
The company declined to comment on those reports.
Data Centre Spending Weighs on Cash Flow
The restructuring comes as Oracle spends heavily to meet demand for cloud and AI services.
Capital expenditure reached US$28.5 billion during the latest quarter, up from US$8.5 billion a year earlier.
The increase mainly reflected data centre expansion.
This contributed to negative free cash flow of US$5.4 billion, compared with negative US$362 million a year earlier.
Oracle also raised US$19.9 billion through a share sale and received US$11.4 billion in customer prepayments during the quarter.
Meanwhile, cloud revenue rose 62% to US$11.6 billion. Cloud infrastructure revenue more than doubled to US$7.4 billion.
Total revenue increased 30% to US$19.3 billion, while net income rose to US$4.8 billion from US$2.9 billion.
Oracle’s remaining performance obligations reached US$664 billion, reflecting contracted revenue that has yet to be recognised.
The company expects to recognise half of that amount within three years.
Featured image: Edited by Fintech News Singapore, based on image by utaem2022 via Magnific
