Oracle Workforce Drops by Around 21,000 Employees as AI Reshapes Operations

Oracle reported a notable reduction in its global workforce during fiscal 2026, with employee numbers falling by approximately 13% year over year.

According to the company's annual filing, Oracle employed about 141,000 people as of May 31, 2026, compared with roughly 162,000 employees a year earlier. The decrease represents around 21,000 positions.

The filing indicated that workforce changes were linked to several factors, including organizational restructuring, product and management adjustments, strategic priorities, acquisitions, and employee performance considerations. Oracle also noted that artificial intelligence has been playing a role in changes across its operations.

The company recorded $1.84 billion in severance and related restructuring expenses during fiscal 2026, a sharp increase from $374 million reported in the previous fiscal year.

The workforce reduction comes after reports earlier in the year that Oracle had eliminated thousands of jobs. The company did not provide additional comment on the matter.

Concerns about AI-driven workforce disruption continue to grow across the technology sector. Data from Layoffs.fyi shows that nearly 196 technology companies have announced layoffs affecting more than 119,800 employees so far this year.

At the same time, Oracle has been expanding its cloud infrastructure ambitions. The company recently secured major data-center agreements involving OpenAI and Meta as it seeks to strengthen its position against larger cloud rivals.

Earlier this month, Oracle said it expects approximately $70 billion in net capital expenditures during the current fiscal year. To support those investments, the company plans to raise an additional $40 billion through debt and equity financing, including a previously announced stock offering.