Oracle Corp. announced in a regulatory filing on Friday, Sept. 11, 2026, that it will increase its fiscal 2026 restructuring costs by approximately $700 million. The move brings the total projected budget for the restructuring plan to roughly $2.8 billion as the company manages costs while spending to capitalize on demand for artificial intelligence (AI) services.
The company stated the plan includes employee severance, contract terminations, and other exit expenses. The expansion follows a period of workforce reductions; as of late May 2026, Oracle's global headcount stood at 141,000, a net decrease of 21,000 employees compared to the previous year. Chief Financial Officer Hilary Maxson told analysts during a Thursday conference call that "simplification and efficiency actions" are intended to contain operating expenses.
The restructuring coincides with capital demands for building large-scale AI data centers for clients such as OpenAI. Oracle reported negative free cash flow of $5.40 billion on Thursday, which was a lower cash burn than the $9.56 billion analysts had estimated. To fund its growth, the company plans to raise $40 billion through debt and equity financing in the current fiscal year, including a $20 billion stock sale completed in the first quarter.
Between May 2025 and May 2026, Oracle's global workforce saw a reduction of 21,000 positions. With an additional $700 million now allocated for the restructuring plan, which includes severance and layoffs, the company noted the plan is partly tied to the adoption of AI across certain business functions. As of May, the workforce consisted of 49,000 U.S. workers and 92,000 international staff.
Oracle’s fiscal 2027 capital expenditure guidance remains between $90 billion and $95 billion, covering costs for AI racks, cooling systems, and networking equipment. While the company reported a $26 billion increase in its revenue backlog, Morningstar analysts noted that it may take years for cloud revenue to reach a scale that generates positive cash flow while supporting continuous capacity expansion.
Oracle is targeting annual revenue of at least $90 billion by fiscal 2027. The company is currently relying on a mix of debt, equity, and client prepayments to manage liquidity. Roughly half of Oracle's $664 billion backlog is expected to convert into sales within the next 36 months.