Oracle has reduced its global workforce by approximately 21,000 employees, representing a 13% decline during its 2026 financial year, as the technology giant continued a broad restructuring programme partly driven by the increasing adoption of artificial intelligence across its operations.
According to the company’s annual report, Oracle employed 141,000 people as of 31 May 2026, down from around 162,000 a year earlier.
The company disclosed that it spent US$1.84 billion on severance packages and other restructuring-related costs during the financial year, a sharp increase from the US$374 million recorded in FY2025.
Oracle stated that the workforce reductions were influenced by a combination of factors, including management changes, product realignments, employee performance considerations, strategic business shifts and acquisitions.
The latest figures follow reports earlier this year indicating that Oracle had eliminated thousands of jobs. The company did not comment on the latest developments.
Concerns over AI-related job displacement continue to grow across the technology sector. Data from Layoffs.fyi shows that 196 technology companies have collectively laid off more than 119,800 workers so far this year.
At the same time, Oracle is intensifying its efforts to strengthen its position in the cloud computing market. The company has recently secured major data centre agreements with OpenAI and Meta Platforms as it seeks to compete more aggressively with industry leaders Amazon and Microsoft.
Unlike some of its larger rivals, which are able to finance significant investments through strong cash generation, Oracle has increasingly relied on debt and cash reserves to support its expansion. The company’s shares have fallen by about 10% since the start of the year.
Earlier this month, Oracle announced plans to invest approximately US$70 billion in capital expenditure during the current financial year. To fund the expansion, the company intends to raise an additional US$40 billion through debt and equity financing, including a previously announced US$20 billion share offering.
