Technology giant Oracle has cut approximately 21,000 jobs globally during fiscal 2026 as the company accelerates its transformation into an artificial intelligence and cloud computing powerhouse.
According to Oracle’s latest annual report, the company’s workforce declined by 13 per cent, falling from around 162,000 employees to 141,000 as of May 31, 2026.
The company has also indicated that further workforce reductions could occur as AI adoption expands across its operations.
AI driving operational changes
In its annual filing, Oracle acknowledged that the deployment of artificial intelligence technologies has already contributed to workforce reductions.
“The deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” the company stated.
Oracle said the restructuring was influenced by a combination of factors, including organisational changes, product strategy shifts, acquisitions, performance-related decisions and the growing role of automation.
Massive AI investments underway
Under the leadership of Larry Ellison, Oracle is undergoing one of the largest transformations in its history.
Traditionally known for database software, the company is now investing heavily in AI infrastructure and cloud computing services, positioning itself as a competitor to major cloud providers such as Amazon Web Services and Microsoft Azure.
Oracle is building large-scale data centres designed to support AI workloads, including projects linked to customers such as OpenAI.
Expansion comes with financial pressure
Unlike some of its larger rivals, Oracle has had to rely significantly on borrowing and external financing to fund its AI ambitions.
The company recently announced plans to spend approximately $70 billion in capital expenditure during the current fiscal year.
To support those investments, Oracle intends to raise around $40 billion through debt and equity financing, including a previously announced stock offering worth $20 billion.
Restructuring costs surge
The workforce reduction programme has come at a substantial cost.
Oracle disclosed that it spent approximately $1.84 billion on severance payments and other restructuring-related expenses during fiscal 2026.
This marks a sharp increase from the $374 million spent on similar activities in the previous financial year.
AI’s growing impact on employment
Oracle’s workforce reduction highlights a broader trend across the technology industry, where companies are increasingly deploying AI tools to improve efficiency and streamline operations.
While businesses argue that artificial intelligence enhances productivity and competitiveness, employees and labour experts have raised concerns about its impact on jobs, particularly in administrative, support and operational roles.
Oracle’s latest move underscores how AI is not only transforming products and services but also reshaping corporate workforce strategies across the global technology sector.