Key facts
- Oracle's restructuring costs will rise by about $700 million.
- The total expected cost of its fiscal 2026 restructuring plan is now approximately $2.8 billion.
- The plan includes severance, contract terminations, and other exit expenses.
- The restructuring is partly tied to the adoption of AI across some functions.
- Oracle's shares rose as much as 7.8% on Friday before closing about 2% lower.
Oracle announced that restructuring costs, including job cuts, will increase by approximately $700 million as part of its plan to manage expenses while investing heavily in AI services. This brings the total expected cost of its fiscal 2026 restructuring plan to about $2.8 billion, a move disclosed after its August quarter. The cloud company is seeking to rein in costs while spending billions to capitalize on booming demand for artificial intelligence services. The plan, which the company says includes severance, contract terminations and other exit expenses, is partly tied to the adoption of AI across some functions. The cuts come as Oracle navigates a volatile stretch for its stock, with investors seemingly split between confidence in its AI-driven growth and concern over how it is funding that growth. Oracle's shares rose as much as 7.8% on Friday after a $26 billion increase in its revenue backlog eased some concerns about its debt-fueled spending spree. The stock later reversed course to close about 2% lower, as analysts said a recovery in cash flow remains some way off.