To cover all these layoffs, Oracle has bumped up its restructuring budget by $500 million, now totaling $2.1 billion for FY26 (June-May), mostly for severance pay.
The company's spending on AI is skyrocketing: from $6.9 billion two years ago to an estimated $50 billion in fiscal 2026, mostly funded by borrowing.
With a debt-to-equity ratio now at 500%, Oracle is taking some big risks compared to rivals who have steadier cash flow and less debt hanging over them.