Oracle has cut about 21,000 jobs globally over the past year as it reshapes its business around artificial intelligence, according to its latest annual report. The software and cloud computing giant said its workforce fell to roughly 141,000 full-time employees by 31 May 2026, down from about 162,000 a year earlier.
The company said the use of AI across its operations has already led to staffing reductions and could continue to affect headcount going forward. The move reflects a broader trend across the tech industry, where companies are pouring huge sums into AI infrastructure while also tightening costs.
Oracle’s restructuring has come with a steep price. The company said it recorded about $1.8 billion in severance and related restructuring costs over the past year, far above the previous year’s figure. It also warned that reorganizing teams can disrupt operations and may create shortages in certain skilled roles.
The cuts come as Oracle races to expand data center capacity and support major AI customers. The company has been investing heavily in cloud and AI infrastructure as demand for those services grows. Like many of its peers, Oracle is trying to balance long-term growth opportunities with near-term pressure on expenses.
The wider tech sector is seeing a similar pattern. Companies including Amazon and Meta have also reduced staff while increasing AI spending. Across the industry, more than 100,000 tech workers are estimated to have lost their jobs over the past year.
Oracle said it is continuing to adjust its resources as its cloud and AI businesses expand. The company says it wants the right teams in place to deliver products for customers around the world, even as it works through one of the biggest workforce shifts in its recent history.
