Impact of AI: This company has carried out a massive layoff of 21,000 employees.
Cloud computing company Oracle has recorded a 13% reduction in its total workforce for the 2026 fiscal year. According to the company’s annual report, Oracle had 141,000 employees as of May 31, 2026, whereas the figure stood at approximately 162,000 during the same period the previous year. The report states that the company continued its business restructuring alongside the adoption of AI; this shift in workforce numbers occurred during this process. The company also disclosed details regarding restructuring-related expenses and future investment plans.
How much did Oracle’s workforce shrink?
According to Oracle’s annual report, the company had a total of 141,000 employees as of May 31, 2026. At the same time last year, the figure was around 162,000. This means the company’s workforce decreased by 13%, or approximately 21,000 employees, over the course of a year.
Why did the number of employees decrease?
The company stated that this change is part of an ongoing business restructuring linked to AI adoption. According to the filing, several factors contributed to this, including changes in management and products, employee performance, strategic shifts, and acquisitions.
How much was spent on restructuring?
In the 2026 fiscal year, Oracle spent $1.84 billion on restructuring-related severance payments and other exit costs. In the preceding fiscal year, this expenditure stood at $374 million.
Were there reports of layoffs earlier as well?
According to reports, there had already been news earlier this year about Oracle cutting thousands of jobs. However, the company did not respond to a request for comment from Reuters.
What impact is AI having on the tech sector?
According to Layoffs.fyi, 196 tech companies have laid off more than 119,800 employees so far this year. The report notes that concerns regarding jobs are rising rapidly due to AI. What is Oracle’s next move?
According to reports, Oracle has struck major data center deals with OpenAI and Meta in recent months to compete with companies like Amazon and Microsoft. The company stated that its net capital expenditure for the current fiscal year is projected to be around $70 billion. To fund this, it will raise an additional $40 billion through debt and equity, including a previously announced $20 billion share issuance.
