Oracle has reduced its global workforce by approximately 21,000 employees over the past year as the technology company restructures its operations to align with the growing demand for artificial intelligence (AI).
According to the company’s latest annual report, Oracle’s workforce declined from about 162,000 employees in May 2025 to 141,000 by May 2026, representing a 13 per cent reduction. The company attributed the cuts in part to the increasing use of AI technologies across its operations.
The layoffs have resulted in about $1.8 billion in severance payments and restructuring costs, significantly higher than the previous year’s expenses. Oracle acknowledged that the reorganisation could create temporary disruptions and lead to shortages of skilled personnel in certain areas.
The company is simultaneously investing heavily in AI and cloud infrastructure, including the expansion of data centres to support the growing demand for AI services. Oracle said it will continue to adjust its workforce and resources to strengthen its cloud and AI offerings.
The move reflects a wider trend across the technology industry, where major firms are reducing staff while directing substantial investments toward AI development. Industry estimates indicate that more than 100,000 technology workers have been laid off globally over the past year as companies reposition themselves for the AI era.