Shares of Oracle Corp (NYSE: ORCL) fell more than 5% on Monday to $142.44 as the company kicked off a new round of layoffs, according to reports. Some teams may see job cuts in the double digits as a percentage of their workforce.

The restructuring, which had been in the works internally, is aimed at lowering salary expenses to free up funds for the company's expanding investments in artificial intelligence infrastructure.

Oracle's headcount has already shrunk by 21,000 employees in fiscal 2026, a drop of about 13%, bringing the workforce to roughly 141,000 before this latest round of cuts. At the same time, the company is aggressively building out data centers, with first-quarter capital expenditures reaching $28.5 billion—up sharply from $8.5 billion in the same period last year. Oracle has also maintained its fiscal 2027 capex guidance of between $90 billion and $95 billion.

Morgan Stanley analyst Sanjit Singh reiterated a "neutral" rating on Oracle with a price target of $210. The firm noted that gross margins and free cash flow conversion in the AI infrastructure business will be key factors in determining whether Oracle's valuation can shift from "neutral" to "overweight."