Oracle Introduces AI to Drive Transformation, Cuts 21,000 Employees

(CNA Austin, June 22, Foreign Reports) Cloud computing giant Oracle (Oracle) is continuously undergoing business restructuring and expanding the adoption of artificial intelligence (AI) applications across the company, leading to a 13% reduction in its total employee count for the fiscal year 2026, equivalent to streamlining approximately 21,000 positions.

According to Oracle's annual report released today, as of May 31, 2026, the company's total number of employees was 141,000, compared to about 162,000 in the same period last year.

The filing shows that Oracle spent $1.84 billion in severance and other exit costs related to restructuring activities in fiscal year 2026, a significant increase from $374 million in the previous fiscal year.

Oracle also stated in its filing that the workforce adjustments are in response to various factors, including management and product changes, performance issues, strategic shifts, and mergers and acquisitions.

The decrease in employee numbers corroborates earlier reports this year about Oracle laying off thousands of employees. Oracle did not respond to Reuters' request for comment.

Concerns about job losses due to AI's impact are rapidly increasing. According to data from Layoffs.fyi, a website that tracks industry layoffs, 196 tech companies have cut over 119,800 employees so far this year.

Oracle, which has long been a smaller player in the cloud computing industry, has signed large-scale data center agreements with OpenAI and Meta in recent months to compete more effectively with rivals such as Amazon and Microsoft.

However, unlike these tech giants that leverage massive cash flows to fund substantial expenditures, Oracle has had to resort to consuming cash and issuing debt. Oracle's stock price has fallen by about 10% year-to-date.

Oracle announced earlier this month that it expects net capital expenditures of approximately $70 billion for the current fiscal year. To fund these expenses, the company will raise an additional $40 billion in debt and equity, including a previously announced $20 billion capital increase plan. (Compiled by Li Pei-shan) 0623