Oracle confirms 21,000 layoffs due to AI, says more job cuts may happen

Oracle cut about 21,000 jobs worldwide in fiscal 2026 as it accelerated its AI-led overhaul. The company said wider AI deployment has already reduced headcount and may lead to further cuts.

In Short

• Oracle's workforce shrank by around 21,000 employees in a year
• The company says AI deployment may lead to more job cuts
• Oracle is spending billions to build AI data centres

Artificial intelligence is helping companies become more efficient. But for many workers, it is also becoming a source of uncertainty. Oracle is the latest example. The US technology giant cut about 21,000 jobs globally in fiscal 2026 as it reshapes its business around artificial intelligence, according to its latest annual report. The company's workforce fell 13 per cent, dropping from about 1,62,000 employees last year to 1,41,000 as of May 31, 2026.

And Oracle says the changes may not stop there.

AI is changing the way Oracle works

In its annual report released on Monday, Oracle said the deployment of AI technologies across its operations has already led to workforce reductions and could result in more job cuts in the future.

"The deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce," the company said.

Oracle added that the workforce adjustments were driven by several factors, including management and product changes, performance issues, strategic shifts and acquisitions.

The company had already signalled major changes earlier this year. In March, Oracle announced plans to cut thousands of jobs as it grappled with a cash crunch caused by its massive AI data centre expansion effort.

Spending billions on AI

Oracle is no longer just a database software company. Led by Chairman Larry Ellison, the company is in the middle of one of the biggest transformations in its history as it races to become a major player in artificial intelligence and cloud computing. Oracle is building huge data centres that can handle AI workloads for customers such as OpenAI.

The strategy puts Oracle in direct competition with industry giants Amazon and Microsoft, both of which already dominate the cloud computing market.

But there is one important difference. Unlike Amazon and Microsoft, which generate massive cash flows to fund their investments, Oracle has had to rely on burning cash and raising debt to finance its ambitions.

Earlier this month, the company said it expects net capital expenditure of around $70 billion in the current fiscal year. To help fund that spending, Oracle plans to raise another $40 billion through debt and equity, including a previously announced stock issuance worth $20 billion.

The cost of restructuring

The shift toward AI has not come cheap. Oracle spent $1.84 billion on severance payments and other exit costs related to restructuring activities during fiscal 2026. That is significantly higher than the $374 million it spent in the previous fiscal year, according to the filing.

- Ends