Oracle reduced its global workforce by 21,000 employees — approximately 13% of its staff — during the 2026 fiscal year ending May 31, 2026. The tech giant officially disclosed details of the cuts in its annual financial regulatory filing on Monday, June 22, explicitly stating that AI adoption and automation directly replaced numerous roles. “The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce," the report said. Conversely, multiple reports indicate that the layoffs are mainly a capital reallocation strategy, as Oracle moves into AI infrastructure.
According to the filing, the company ended the 2026 fiscal year with 141,000 employees, down from 162,000 at the same period last year. Oracle claims the restructuring cost it $1.84 billion in severance payments and other related costs, nearly 400% higher than the restructuring bill in the previous financial year. It also said in its filing that the cuts were due to various factors, including management and product changes, performance issues, and broader re-strategizing.
