Oracle is increasing its "2026 Restructuring Plan" budget by $700 million. The total cost for the initiative now reaches approximately $2.8 billion. Most of these funds cover employee severance payments, according to an SEC filing.
The company is shifting capital to build large-scale data centers for artificial intelligence. This expansion aims to meet demand from major AI clients such as OpenAI. Heavy infrastructure spending has created a cash crunch for the software giant.
Oracle already reduced its workforce by about 21,000 employees in the fiscal year ending in May.