Oracle Workforce Declines by 21,000 Amid AI Adoption
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Oracle's total workforce decreased by 13%, or approximately 21,000 employees, in fiscal 2026. This reduction occurred as the cloud computing giant continued restructuring its business, partly driven by the adoption of artificial intelligence across its operations.
The company had 141,000 employees as of May 31, 2026, down from about 162,000 during the same period last year. This information was detailed in Oracle's annual report.
The company spent $1.84 billion on severance payments and other exit costs related to the restructuring activities in fiscal 2026. This figure is significantly higher than the $374 million spent in the previous fiscal year.
Workforce adjustments were a response to various factors, including management and product changes, performance issues, strategic shifts, and acquisitions. Earlier reports this year also indicated Oracle was cutting thousands of jobs.
Concerns are increasing over potential job losses due to AI disruption across the technology sector. So far this year, 196 technology companies have laid off more than 119,800 employees, according to Layoffs.fyi, a website tracking sector-wide job cuts.
Oracle, historically a smaller player in cloud computing, recently signed substantial data-centre deals with OpenAI and Meta. These agreements aim to boost its competition with rivals such as Amazon and Microsoft.
Unlike some larger technology firms that fund significant outlays through robust cash flows, Oracle has had to resort to burning cash and issuing debt. Company shares have declined about 10% this year.
The company anticipates net capital expenditure of around $70 billion in its current fiscal year. To fund this, Oracle plans to raise an additional $40 billion in debt and equity, which includes a previously announced $20 billion stock issuance.
Oracle's workforce declined by 13%, or approximately 21,000 employees, in fiscal 2026.
This reduction is linked to business restructuring and artificial intelligence adoption.
Severance payments for restructuring reached $1.84 billion in fiscal 2026.
Source: Reuters
