Oracle has cut around 21,000 jobs globally in fiscal 2026 as the technology giant restructures its business around artificial intelligence and cloud computing. According to the company’s latest annual report, its workforce declined by 13 per cent, falling from about 1,62,000 employees a year ago to 1,41,000 as of May 31, 2026.

The company also indicated that further workforce reductions could follow, saying the increasing deployment of artificial intelligence across its operations may continue to affect employee numbers.

Oracle Says AI Is Driving Organisational Changes

In its annual report released on Monday, Oracle said the use of AI technologies had already resulted in job cuts and could lead to additional reductions in the future.

“The deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” the company said.

Oracle added that the changes in headcount were influenced by a combination of factors, including product and management changes, strategic realignments, acquisitions and employee performance considerations.

The company had signalled the possibility of large-scale layoffs earlier this year when it announced plans to eliminate thousands of positions amid mounting costs linked to its artificial intelligence infrastructure expansion.

Company Spending Heavily to Expand AI Business

Under Chairman Larry Ellison, Oracle has been transforming itself from a traditional database software company into a major player in cloud computing and artificial intelligence.

The company is investing heavily in large-scale data centres capable of handling AI workloads for customers, including OpenAI.

The strategy places Oracle in direct competition with cloud computing leaders Amazon and Microsoft.

Unlike those rivals, however, Oracle does not generate comparable levels of cash flow and has relied on borrowing and cash burn to finance its expansion.

Earlier this month, the company projected net capital expenditure of around $70 billion for the current fiscal year.

To fund those investments, Oracle plans to raise another $40 billion through debt and equity, including a previously announced stock offering worth $20 billion.

Restructuring Costs Surge

Oracle’s shift towards artificial intelligence has also led to a sharp increase in restructuring expenses.

According to the filing, the company spent $1.84 billion on severance payments and other exit-related costs during fiscal 2026.

That represented a significant increase from the $374 million spent on restructuring activities in the previous financial year.

The latest figures highlight the scale of Oracle’s transformation as it seeks to establish itself as a major force in the rapidly expanding AI market.

While the company’s investments underscore its long-term ambitions, the transition has also brought significant changes to its workforce and cost structure.

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