By Joe Stonor

Oracle will spend $500 million more on restructuring costs in the current fiscal year than previously reported as artificial-intelligence models allow the company to shrink parts of its workforce.

The additional spend--which will cover redundancy packages and other exit costs--brings the total costs for its restructuring program to $2.1 billion over the year ending May 31, according to a Securities and Exchange Commission report filed Wednesday.

That figure is an increase on the $1.6 billion the company said it expected to spend in its previous quarterly filing in December, suggesting an acceleration in its job cutting program. The cloud computing giant's outlay on restructuring had already shot up by 337% on-year in the nine months ended Feb. 28.

Oracle said Tuesday alongside third-quarter earnings that increasingly powerful AI models would allow it to cut jobs across its software teams.

"AI models for generating computer code have become so efficient that we have been restructuring our product development teams into smaller, more agile and productive groups," the company said.

The company hasn't disclosed how many jobs will be cut, and didn't immediately respond to a request for comment.

The Austin-headquartered company is among a clutch of major tech names to point to AI developments when announcing large cuts to its workforce. Jack Dorsey's payment processing company Block attributed a 40% cut in its workforce to AI developments earlier this year.

Fears that autonomous AI agents would damage software-as-a-service companies' business models reached fever pitch earlier this year, with shares in tech companies the world over selling off in response.

Speaking to investors Tuesday, Oracle co-Chief Executive Mike Sicilia addressed these concerns.

"Some smaller or single-focused SaaS players may well be disrupted," Sicilia said. "But Oracle will not be among them."

Shares edged down 0.5% in premarket trading.

Write to Joe Stonor at josephmichael.stonor@wsj.com

(END) Dow Jones Newswires

March 12, 2026 07:01 ET (11:01 GMT)

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