Oracle has cut around 21,000 jobs globally in the last 12 months, as the tech giant escalates AI adoption.
The software and cloud computing firm said it had cut down its workforce to around 141,000 full-time employees as of May 31, 2026, from about 162,000 workers at the same time last year.
Oracle explains layoffs in annual report
On Monday, June 22, the firm claimed that the workforce adjustments were driven by management and product changes, performance issues, strategic shifts, and acquisitions.
According to the latest annual report, the "deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce".
The 13 per cent shed of Oracle's workforce is part of a wider trend among tech firms as they spend hundreds of billions of dollars on building AI infrastructure such as data centres.
Tech giants shift to AI
Oracle's move has once again highlighted concerns about AI-related job losses.
According to Layoffs.fyi, a site that monitors industry-wide layoffs, 196 tech firms have together dismissed over 119,800 workers so far this year.
Amazon and Facebook-owner Meta have cut thousands of jobs in recent months as they intensify investment in AI.
Instead of using words such as "over-hiring" and "efficiency", tech giants have been blaming artificial intelligence for almost-yearly decisions to cut down roles.
In January, Mark Zuckerberg said, "I think that 2026 is going to be the year that AI starts to dramatically change the way that we work."
Since the start of the year, major companies, as well as smaller firms, including Pinterest and Atlassian, have announced or warned of plans to shrink their workforce, citing AI developments.
Jack Dorsey says layoffs are not 'about efficiency'
Jack Dorsey, who leads financial technology firm Block, opened up about the layoff plans.
"This isn't just about efficiency," he told shareholders last month, as he announced that his company, which operates platforms like CashApp, Square and Tidal, would be cutting almost half its workforce.
He added, "Intelligence tools have changed what it means to build and run a company… A significantly smaller team, using the tools we're building, can do more and do it better."
Dorsey said he expected a "majority of companies" to come to a similar conclusion within the next year. "I wanted to get ahead of it," he continued.
How much the job cuts cost Oracle?
Oracle made "significant" job cuts in April, according to senior employees posting online; however, the full extent of the layoffs had not been revealed until its annual report was filed.
The firm revealed that the cuts have led to about $1.8 billion in severance payments and other restructuring costs in the past year.
AI funding plans
Founded by Larry Ellison, Oracle is transitioning from its traditional role as a database software firm into a major cloud computing player. It is building large data centres to support AI companies like OpenAI and Meta.
Unlike its competitors Amazon and Microsoft, which fund their AI growth through internal cash flows, Oracle depends on burning cash and raising debt to fund its artificial intelligence expansion.
To support its ambition, Oracle expects to spend about $70 billion on capital investments this year.
The company also plans to raise $40 billion through debt and equity to finance the expansion, a figure that includes a previously announced stock issuance of $20 billion.
