American technology giant Oracle has reduced its global workforce by about 21,000 employees over the past year as the company accelerates its shift toward artificial intelligence (AI) and cloud computing.
According to Oracle’s latest annual report, the company had approximately 141,000 full-time employees as of May 31, 2026, compared to about 162,000 workers during the same period last year.
The company revealed that the growing use of AI across its operations has contributed to workforce reductions, with the trend expected to continue as automation becomes more integrated into its business activities.
The layoffs, representing nearly 13% of Oracle’s workforce, come as major technology companies invest billions of dollars into AI infrastructure, including data centres and advanced computing systems.
Oracle disclosed that the restructuring exercise resulted in about $1.8 billion in severance payments and related costs during the financial year, significantly higher than the previous year’s figure of $374 million.
While the company says the reorganisation is aimed at strengthening its cloud and AI businesses, it acknowledged that the process could be disruptive and may create shortages in certain skilled roles, potentially affecting productivity.
Oracle stated that it will continue balancing its workforce as demand for AI products grows globally, insisting that the goal is to ensure it has the right talent to deliver cutting-edge AI and cloud solutions.
The development reflects a broader trend across the technology industry, where firms such as Amazon and Meta have also announced major job cuts while ramping up investments in artificial intelligence.
As the AI race intensifies, companies are increasingly reshaping their workforce structures, raising fresh debates about the future of jobs in the technology sector.
