Technology giant Oracle has reduced its global workforce by approximately 21,000 employees over the past year as the company accelerates investments in artificial intelligence and cloud infrastructure.
According to Oracle’s latest annual report, the company employed about 141,000 full-time workers as of May 31, 2026, compared to roughly 162,000 employees a year earlier, representing a workforce reduction of nearly 13 percent.
The company acknowledged that the growing use of artificial intelligence across its operations has contributed to the restructuring exercise and could lead to additional workforce adjustments in the future.
“The deployment of AI technologies across our operations has resulted, and may continue to result, in reductions to our workforce,” Oracle stated in the report.
The layoffs come as major technology firms worldwide redirect resources toward AI development, data centres and cloud computing infrastructure, prompting a shift in staffing priorities across the industry.
Oracle disclosed that the restructuring resulted in approximately $1.8 billion in severance payments and related costs during the financial year, a significant increase from the $374 million recorded in the previous year.
The company noted that while the restructuring is intended to position Oracle for future growth, it may also create short-term challenges, including the loss of experienced personnel and potential productivity disruptions.
Despite the workforce reduction, Oracle said it remains focused on expanding its cloud and AI businesses and will continue adjusting its workforce to align with evolving business needs.
“As our cloud and AI businesses grow, we will continually balance our resources and restructure our development group to help ensure we have the right people delivering the best cloud and AI products to our customers around the world,” the company said.
Oracle has emerged as a key player in the global race to build AI infrastructure, providing data centre capacity and cloud services for major artificial intelligence firms, including OpenAI and Meta.
The company is reportedly planning to invest tens of billions of dollars in infrastructure expansion as demand for AI computing power continues to surge.
Oracle’s workforce reduction reflects a broader trend across the technology sector, where companies are increasingly using automation and AI-driven tools while simultaneously investing heavily in next-generation technologies.
Industry giants such as Amazon, Meta and Google have also announced significant job cuts in recent months as they channel billions of dollars into AI development and supporting infrastructure.
Analysts say the trend highlights how artificial intelligence is transforming not only products and services but also the structure of the global technology workforce, with companies prioritising efficiency and specialised talent to compete in the rapidly evolving AI landscape.
