Tech giant Oracle cuts 21,000 jobs as it embraces AI
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- Tech giant Oracle has eliminated approximately 21,000 jobs globally over the past year.
- The company attributes these workforce reductions to the integration of artificial intelligence technologies across its operations.
- These cuts represent about 13% of Oracle's workforce and are part of a broader trend in the tech industry investing heavily in AI infrastructure.
Software and cloud computing firm Oracle has significantly reduced its global workforce, shedding about 21,000 roles in the past year. This substantial cutback, detailed in the company's latest annual report, brings its total employee count to approximately 141,000 as of May 31, 2026, down from about 162,000 a year prior.
The deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce.
The company explicitly states that the "deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce." These layoffs amount to roughly 13% of Oracle's total staff. This move aligns with a wider industry-wide shift, as major tech companies are investing billions of dollars into building essential AI infrastructure, such as data centers.
The financial impact of these restructuring efforts is considerable. Oracle reported approximately $1.8 billion in severance payments and other restructuring costs over the last year, a significant increase from the $374 million recorded in the previous financial year. The company acknowledges that these reorganizations can be disruptive and warns of potential productivity losses due to shortages in skilled workers in specific roles, which could impact earnings.
More than 100,000 tech workers have been laid off in the past year, according to estimates from employment tracking firms.
Oracle is actively engaged in a race to develop data centers crucial for AI giants like OpenAI and Meta. The company reportedly planned to invest at least $50 billion in infrastructure this year. This strategic pivot towards AI investment, even at the cost of significant job cuts, mirrors similar moves by other tech behemoths like Google, Amazon, and Meta, which collectively plan to invest around $650 billion in AI technology this year.
the company needed to be organised "more leanly" because AI was "enabling companies to innovate much faster than ever before."
DistantNews Editorial
Originally published by BBC News. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.
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