Oracle Stock Falls 5% as Layoffs, Debt Fears and EU Antitrust Scrutiny Converge

Oracle shares dropped as much as 5.4% on September 1, 2026, as a global bond selloff pushed long-term government borrowing costs to multi-decade highs, amplifying investor concern over the company's roughly $95 billion debt load, which funds its heavy spending on cloud and AI infrastructure. The selloff hit debt-laden technology stocks particularly hard, with Oracle drawing extra scrutiny given its capital-intensive buildout strategy. TD Cowen cut its price target on the stock to $240 from $300, a reduction of $60, reflecting growing Wall Street skepticism about whether Oracle's AI upside can outpace its balance sheet pressure.

At the same time, reports emerged that Oracle is preparing another round of global job cuts totaling between 7,000 and 10,000 positions, with managers expected to trim budgets in early to mid-September. Yahoo Finance separately reported that approximately 3,000 jobs in India are being cut in the current round. Oracle's India workforce stands at roughly 30,000 people and has already absorbed around 12,000 of the 21,000 total cuts made over the past year. No official confirmation has been issued, and employees have grown increasingly anxious after previous rounds in which workers were locked out of systems without advance notice.

Adding a regulatory dimension, EU antitrust regulators have placed Oracle's licensing practices under scrutiny, according to a source cited by Reuters. The situation is described as similar to a case involving SAP, which was settled with concessions in July. Oracle faces its next earnings report with analysts generally expecting growth and a likely beat, but the combination of rising rates, heavy debt, workforce reductions and a fresh regulatory inquiry leaves the stock under pressure heading into the release.