Oracle Cuts 21,000 Jobs as AI Reshapes Workforce and Cloud Expansion Accelerates

Oracle reduced its global workforce by approximately 21,000 employees, or 13%, during fiscal 2026 as the company continued a major restructuring effort while expanding its artificial intelligence and cloud computing operations.

According to Oracle’s annual report released Monday, the company employed 141,000 workers as of May 31, 2026, down from roughly 162,000 employees a year earlier. The workforce reduction comes amid broader changes across the technology sector, where companies are increasingly using AI-driven tools to streamline operations and improve efficiency.

The cloud computing giant disclosed that it spent $1.84 billion on severance payments and other restructuring-related costs during fiscal 2026, a sharp increase from the $374 million recorded in the previous fiscal year. Oracle said the workforce adjustments were influenced by several factors, including management changes, product realignments, employee performance reviews, strategic business shifts, and acquisitions.

The latest figures follow reports earlier this year indicating that Oracle had eliminated thousands of positions across multiple business units. The company did not provide additional comments regarding the job cuts.

Concerns about AI-related job displacement continue to grow throughout the technology industry. Data from Layoffs.fyi shows that 196 tech companies have laid off more than 119,800 employees so far this year, highlighting the ongoing transformation driven by automation and artificial intelligence.

While Oracle has historically been a smaller competitor in the cloud infrastructure market compared with Amazon Web Services and Microsoft Azure, the company has recently secured major data center agreements with OpenAI and Meta. These deals are part of Oracle’s strategy to strengthen its position in the rapidly expanding AI and cloud services market.

To support its aggressive growth plans, Oracle recently announced that it expects net capital expenditures of about $70 billion in its current fiscal year. The company plans to raise an additional $40 billion through debt and equity financing, including a previously announced $20 billion stock offering. Unlike larger rivals with stronger cash flow generation, Oracle has relied more heavily on debt financing to fund its expansion. Oracle shares have declined roughly 10% year-to-date as investors weigh the costs and risks associated with its ambitious AI and cloud infrastructure investments.