Oracle’s restructuring costs could reach nearly $2.8 billion

Management expanded the programme after the quarter ended to cover additional measures

Oracle’s restructuring bill could reach almost $2.8 billion after the company added around $700 million to the plan.

In a regulatory filing, Oracle said the estimated cost stood at up to $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 $167 million in expenses linked to the programme during the three months ended 31 August 2026, compared with $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 restructuring comes as Oracle spends heavily to meet demand for cloud and AI services.

Capital expenditure reached $28.5 billion during the latest quarter, up from $8.5 billion a year earlier.

The increase mainly reflected data centre expansion.

This contributed to negative free cash flow of $5.4 billion, compared with negative $362 million a year earlier.

Oracle also raised $19.9 billion through a share sale and received $11.4 billion in customer prepayments during the quarter.