As Oracle races to become a major AI and cloud computing player, the tech giant reduced its workforce by 13% and spent $1.84 billion on restructuring-related costs during fiscal 2026.
BY PC Bureau
June 23, 2026: Oracle’s aggressive push into artificial intelligence is reshaping more than just its technology business—it is also transforming its workforce. The US software giant eliminated roughly 21,000 jobs worldwide during fiscal 2026 as it accelerated investments in AI and cloud infrastructure, according to its latest annual report. The company’s headcount fell 13 per cent, from approximately 162,000 employees a year ago to 141,000 as of May 31, 2026.
And Oracle has warned that more workforce reductions could follow.
In its annual report released on Monday, Oracle said the growing use of artificial intelligence across its operations has already resulted in job cuts and may continue to impact staffing levels 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 in the filing.
Oracle said the workforce reductions were influenced by a range of factors, including management restructuring, product realignments, employee performance considerations, strategic business shifts and acquisitions.
The company had already hinted at major organisational changes earlier this year. In March, Oracle announced plans to cut thousands of jobs as it sought to manage financial pressures linked to its massive expansion of AI-focused data centres.
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Betting big on artificial intelligence
Oracle is in the midst of one of the most significant transformations in its history. Under Chairman Larry Ellison, the company is seeking to evolve beyond its traditional database software roots and establish itself as a leading force in artificial intelligence and cloud computing.
To support that ambition, Oracle is constructing large-scale data centres capable of handling intensive AI workloads for customers, including OpenAI. The strategy puts the company in direct competition with cloud leaders Amazon and Microsoft.
However, unlike its rivals, Oracle lacks the same scale of cash generation to fund its expansion. As a result, the company has increasingly relied on debt and external financing to pursue its AI ambitions.
Earlier this month, Oracle projected net capital expenditure of about $70 billion for the current fiscal year. To finance that spending, the company plans to raise an additional $40 billion through debt and equity markets, including a previously announced $20 billion stock offering.
Restructuring comes at a cost
Oracle’s AI transition has carried a substantial financial burden. During fiscal 2026, the company spent $1.84 billion on severance payments and other restructuring-related costs, sharply higher than the $374 million recorded in the previous fiscal year.
The figures underscore the scale of Oracle’s transformation as it doubles down on AI infrastructure, even as the shift raises fresh questions about the future of jobs in the technology sector.
