Oracle Confirms 21,000 Layoffs Due to AI, Warns More Job Cuts Could Follow

Oracle has confirmed that it cut around 21,000 jobs worldwide during fiscal year 2026 as part of its ongoing artificial intelligence (AI) transformation strategy. According to the company’s latest annual report, its global workforce declined by 13%, falling from approximately 162,000 employees in May 2025 to 141,000 by May 31, 2026.

The US-based technology company stated that the growing deployment of AI across its operations has already contributed to workforce reductions and could result in additional layoffs in the coming years.

AI Reshaping Oracle’s Workforce

In its annual filing, Oracle acknowledged that AI technologies are changing how the company operates and manages its workforce.

“The deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” Oracle said in its report.

The company noted that the workforce adjustments were also influenced by management changes, product restructuring, performance-related decisions, acquisitions, and broader strategic shifts.

Oracle had already hinted at significant workforce changes earlier this year when it announced plans to reduce jobs amid financial pressures caused by its aggressive AI infrastructure expansion.

Oracle’s Massive AI Investment Push

Under the leadership of Chairman Larry Ellison, Oracle is rapidly transforming from a traditional database software company into a major player in cloud computing and artificial intelligence.

The company is investing heavily in building large-scale AI data centers capable of handling advanced AI workloads for customers, including OpenAI. This strategy places Oracle in direct competition with cloud giants Amazon and Microsoft.

Unlike its rivals, however, Oracle has relied heavily on borrowing and cash spending to fund its ambitious AI expansion plans.

$70 Billion AI Infrastructure Spending Planned

Oracle recently revealed plans to spend approximately $70 billion in net capital expenditures during the current fiscal year, primarily focused on AI infrastructure and cloud expansion.

To support these investments, the company intends to raise an additional $40 billion through debt and equity financing, including a previously announced stock issuance worth $20 billion.

Restructuring Costs Surge

The company’s AI-driven restructuring efforts have come at a significant cost. Oracle reported spending $1.84 billion on severance packages and employee exit costs during fiscal 2026.

This represents a sharp increase from the $374 million spent on restructuring-related expenses in the previous fiscal year.

More Layoffs Possible

While Oracle remains optimistic about its AI-driven future, the company has warned that continued automation and AI adoption could lead to additional workforce reductions. As businesses increasingly integrate AI into core operations, Oracle’s latest move highlights the growing impact of artificial intelligence on global employment trends.

With billions being invested in AI infrastructure and cloud services, Oracle is betting heavily on technology-driven growth—even as thousands of workers face uncertainty about their future roles.