Oracle Reduces Global Workforce by 21,000 as AI Integration Continues

US technology firm Oracle has cut around 21,000 positions globally over the last year, reorganising its operations around artificial intelligence (AI) initiatives. The company's annual report states it employed approximately 141,000 full-time staff as of 31 May 2026, a notable decrease from 162,000 in the previous year.

Oracle explicitly noted that the 'deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce.' This trend is consistent with wider industry shifts, where technology firms are committing hundreds of billions to AI adoption and data centre infrastructure.

Substantial job reductions were reportedly implemented in April, though the full scale of these layoffs only became apparent with the recent annual report. The firm recorded approximately $1.8bn in severance and restructuring costs during the past year, a considerable rise from $374m in the preceding financial year.

Oracle acknowledged that its restructuring could be 'disruptive' and potentially lead to shortages of skilled workers in specific areas, impacting productivity and earnings. The company has been aggressively expanding its data centre capacity to support AI powerhouses such as OpenAI and Meta, with plans to invest at least $50bn in infrastructure this year. Oracle was co-founded by Larry Ellison, who remains its chief technology officer.