Oracle reduced its global workforce by approximately 21,000 employees during fiscal 2026 as the cloud computing company continued restructuring its operations.
The workforce reduction was partly linked to the growing use of artificial intelligence across the business. However, Oracle also cited strategic, management and performance-related factors.
Oracle Workforce Falls 13%
Oracle employed 141,000 people as of May 31, 2026, according to the company’s annual report released on Monday.
That figure was down from approximately 162,000 employees during the same period a year earlier.
As a result, Oracle’s total workforce declined by around 13%, representing a reduction of roughly 21,000 positions.
Restructuring Costs Rise Sharply
Oracle spent $1.84 billion on severance payments and other restructuring-related exit costs during fiscal 2026.
This was significantly higher than the $374 million the company spent during the previous fiscal year.
The sharp increase reflects the scale of Oracle’s workforce adjustments and wider efforts to reorganize its business.
AI Adoption Contributes to Business Changes
Oracle said the workforce changes resulted from several factors, including management decisions, product changes and employee performance issues.
The company also cited acquisitions and shifts in its broader corporate strategy.
Artificial intelligence adoption across Oracle’s operations was among the factors influencing the restructuring. However, the filing did not suggest that AI alone was responsible for all job reductions.
Previous Reports Pointed to Oracle Job Cuts
The workforce decline follows several reports earlier this year that Oracle was cutting thousands of jobs.
The company did not respond to a request for additional comment regarding the latest employment figures.
Concerns about AI-related disruption in the technology sector have continued to grow as more companies automate tasks and reorganize their workforces.
Technology Layoffs Continue in 2026
According to Layoffs.fyi, 196 technology companies have announced more than 119,800 job cuts so far this year.
The figures have increased concerns that artificial intelligence, cost-cutting measures and changing business priorities could continue affecting employment across the technology industry.
However, not every technology layoff can be directly attributed to AI. Companies are also responding to economic uncertainty, acquisitions, product changes and previous overhiring.
Oracle Expands Its Cloud and AI Infrastructure
Oracle was previously considered a smaller competitor in the cloud computing market compared with Amazon and Microsoft.
However, the company has recently signed major data-center agreements with OpenAI and Meta as it attempts to strengthen its position in cloud infrastructure and artificial intelligence.
These deals could help Oracle compete more aggressively for demand created by AI companies requiring large amounts of computing capacity.
Massive Spending Creates Financial Pressure
Oracle’s expansion strategy requires substantial investment in data centers and other infrastructure.
Unlike larger competitors that can finance spending through stronger cash flows, Oracle has increasingly relied on debt and external funding.
The company’s shares were down approximately 10% for the year at the time of the report, reflecting investor concerns about its spending plans and financial commitments.
Oracle Plans $70 Billion in Capital Expenditure
Oracle expects net capital expenditure of approximately $70 billion during its current fiscal year.
To help finance that spending, the company plans to raise another $40 billion through debt and equity.
The funding plan includes a previously announced stock issuance worth around $20 billion.
Oracle’s aggressive investment strategy highlights its determination to expand its cloud and AI infrastructure. However, the plan also raises questions about debt levels, cash flow and potential shareholder dilution.
