Redmond, Washington: Oracle eliminated approximately 21,000 jobs worldwide over the past year as the technology company continues to restructure its operations around artificial intelligence (AI), according to its latest annual report.
The software and cloud computing giant reported having around 141,000 full-time employees as of May 31, 2026, compared with roughly 162,000 employees a year earlier. The reduction represents about 13 percent of the company’s global workforce.
In its annual filing, Oracle stated that the adoption of AI technologies across its business operations has already contributed to workforce reductions and could lead to further job cuts in the future. The company’s move reflects a broader trend across the technology sector, where firms are investing heavily in AI infrastructure while streamlining staffing levels.
Several major technology companies, including Amazon and Meta, have also announced significant layoffs in recent months as they redirect resources toward AI development. Industry estimates indicate that more than 100,000 technology-sector jobs have been eliminated over the past year.
Although reports from senior employees suggested Oracle carried out substantial layoffs in April, the full scale of the workforce reduction was not publicly known until the company released its annual report.
Oracle disclosed that the restructuring programme resulted in approximately $1.8 billion in severance payments and related costs during the past financial year, a sharp increase from the $374 million recorded in the previous year.
The company acknowledged that its restructuring initiatives could be disruptive and warned that workforce changes may create shortages of skilled employees in certain positions. Such gaps, Oracle noted, could affect productivity and potentially impact future financial performance.
The company has not yet provided additional public comment on the layoffs.
Oracle is currently expanding its network of data centres to support major AI clients, including OpenAI and Meta, as competition intensifies in the AI infrastructure market. Earlier reports indicated that Oracle plans to invest at least $50 billion in infrastructure development this year.
The company was co-founded by Larry Ellison, one of the world’s wealthiest individuals, who continues to serve as Oracle’s chief technology officer.
Across the technology industry, companies are increasingly reducing labour costs, often their largest operating expense, to finance massive AI investments. Collectively, Google, Amazon, and Meta are expected to spend around $650 billion on AI-related projects this year.
Amazon alone has announced plans to invest approximately $200 billion in AI initiatives over the coming year, the highest level among major technology companies. The company, which employs more than 1.5 million people globally, has also outlined plans to cut around 30,000 jobs through multiple rounds of layoffs.
A senior Amazon executive previously stated in an internal memo that the company needed to operate more efficiently, noting that AI is enabling businesses to innovate at an unprecedented pace.
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