Oracle is preparing another sweeping round of layoffs this month as the software giant piles up debt to fund its all-in bet on AI data centers, according to a report first surfaced by Business Insider and confirmed by multiple outlets Wednesday.

Managers have been asked to identify which employees would be affected, with the company aiming to trim payroll ahead of September 1, the start of its second fiscal quarter. Reports on the scale vary, but people familiar with the planning told Business Insider that cuts could run between 20,000 and 30,000 positions — as much as 12% to 18% of Oracle's roughly 162,000-person global workforce — with double-digit percentage reductions on some teams.

It would be the latest chapter in a brutal stretch for Oracle's workforce. The company has already shed close to 21,000 roles over the past year as it redirects spending toward the cloud and AI infrastructure race.

THE MONEY BEHIND THE CUTS

The numbers explain the urgency. Oracle's total debt had climbed to roughly $129.5 billion as of early August, on top of $260 billion in data center lease commitments the company has signed to support its AI ambitions. To cover the buildout, Oracle tapped debt markets for $43 billion and raised another $5 billion selling stock during fiscal 2026, and it expects to raise roughly $40 billion more through borrowing and equity sales over the coming year, according to financial disclosures reviewed by IBTimes UK.

Capital spending for fiscal 2026 hit $55.7 billion, more than double the $21.2 billion Oracle spent the year before, leaving the company with a cash outflow $23.7 billion larger than what it generated from operations.

Industry analysts have described the move as a stark trade-off: Oracle is betting that AI infrastructure contracts, including massive cloud deals reported with major AI developers, will eventually outpace the enormous upfront costs — even if it means shrinking the workforce that built the company's traditional database business.

Oracle has not formally announced the layoffs, and the company has not detailed which divisions would be hit hardest. Wall Street will get a clearer picture when Oracle reports fiscal first-quarter earnings in September, the same month the cuts are expected to take effect.