Reports are circulating that Oracle (NYSE: ORCL) is planning another round of job cuts this month. The company has reportedly asked management to submit lists of employees who will be affected, with the goal of completing the reductions before the start of the second fiscal quarter on September 1. Some teams may face layoff ratios reaching double digits. Following the news, ORCL shares edged up 1.2% in after-hours trading on Tuesday evening. The stock hit a 52-week low in July but has shown signs of stabilization this month.

This is not the first large-scale adjustment for Oracle. In its previous fiscal year ending May 2026, the company cut 21,000 full-time positions, reducing its total workforce by 13% to 141,000 employees. It incurred $1.84 billion in severance and related exit costs for those cuts, compared to just $374 million in the prior fiscal year. In its annual report, the company stated these adjustments were made in response to management and product changes, performance issues, strategic shifts, and acquisitions.

As a latecomer to the cloud computing race, Oracle has recently secured several large-scale data center partnerships with companies like OpenAI and Meta, accelerating its efforts to catch up to Amazon and Microsoft. Its remaining performance obligations (RPO) surged 363% in the fourth fiscal quarter to a record $638 billion, surpassing both Alphabet and Microsoft. However, to fund its AI infrastructure expansion, the company is taking on significant debt. It plans to raise $40 billion through debt and equity financing this fiscal year, following $43 billion in debt and $5 billion in equity financing in the last fiscal year. Total liabilities (including debt) jumped 48% in the fourth quarter to $218.7 billion, marking the largest increase on record. High leverage and reliance on a few major clients are becoming primary concerns for some investors.

On Stocktwits, retail investor sentiment has turned "bearish" over the past week. Still, some traders believe CoreWeave's strong performance proves that demand for cloud infrastructure remains robust, which bodes well for Oracle. Comments included "buy the dip," while others noted, "The company knows how to manage debt, I'm not worried." Among 44 analysts, 36 rate the stock a "buy" or higher, with an average price target of $246.67, implying roughly 70% upside from Tuesday's closing price.