Oracle Reduces Workforce Amid AI Business Shift
US technology giant Oracle has reduced its global workforce by approximately 21,000 roles over the past year as it restructures its business around artificial intelligence (AI), according to its latest annual report.
The software and cloud computing company reported having around 141,000 full-time employees as of 31 May 2026, a decrease from about 162,000 workers at the same time the previous year.
The report states:
"The deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,"
These job cuts align with a broader trend among technology firms investing hundreds of billions of dollars in AI adoption and infrastructure development, including data centres.
Other major companies such as Amazon and Meta, the owner of Facebook, have also eliminated thousands of jobs recently while heavily investing in AI.
Employment tracking firms estimate that over 100,000 tech workers have been laid off in the last year.
Details on Oracle’s Layoffs and Financial Impact
Oracle reportedly executed "significant" job cuts in April, according to senior employees sharing information online, though the full scale of the layoffs was only disclosed in the annual report filing.
The company indicated that these reductions have resulted in approximately $1.8 billion (£1.36 billion) in severance payments and other restructuring expenses over the past year.
This amount is substantially higher than the $374 million restructuring costs recorded in the previous financial year.
Oracle acknowledged the challenges posed by these changes, stating:
"Our restructuring efforts can be disruptive."
The company also cautioned that the reorganisation might cause shortages of skilled personnel in certain roles, potentially leading to productivity losses that could affect earnings.
The BBC has reached out to Oracle for additional comments.
Oracle’s AI Infrastructure Expansion
Oracle is actively competing to deploy data centres for AI leaders such as OpenAI and Meta.
Previously, the BBC reported that Oracle intends to invest at least $50 billion in infrastructure this year.
The company was co-founded by Larry Ellison, who is among the wealthiest individuals globally and currently serves as Oracle's chief technology officer.
