Oracle has reduced its workforce by 21,000 people in the last year, blaming artificial intelligence (AI) and a broader company overhaul for the cuts.
The tech firm revealed the layoffs in its yearly report filed on 22 June, 2026. Employee numbers dropped to 1,41,000 as of 31 May, down 13 per cent from 1,62,000 the year before.
Oracle stated in the filing that AI plays a direct role and the adoption and deployment of AI technologies across their operations will continue to result in reductions to their workforce.
Oracle spent $1.84 billion on severance and exit costs in fiscal 2026, compared with just $374 million the year prior. Other reasons included management changes, shifts in products, performance issues, and strategy updates.
Of the current 1,41,000 staff, roughly 49,000 are in the US and 92,000 are overseas. Headcount is now slightly below where it was before Oracle’s $28 billion Cerner purchase in 2022.
The cuts come as Oracle invests heavily in AI. It is building data centres for OpenAI and Meta to take on Amazon and Microsoft. To pay for $70 billion in planned capital spending, Oracle plans to raise $40 billion through debt and equity.
Oracle stock is down about 10 per cent this year. Across tech, 196 companies have laid off more than 1,19,800 workers in 2026.
