Oracle slashes 21,000 jobs in fiscal 2026, citing AI adoption and restructuring
Oracle reduced its workforce by 21,000 employees, or 13%, in the fiscal year that ended May 31, as the company accelerates its pivot to cloud and AI, restructuring costs rose to $1.84 billion.
The scale of the cuts
Oracle's annual report, filed Monday with the SEC, shows the company ended fiscal 2026 with 141,000 full-time employees, down from approximately 162,000 a year earlier. The 13% decline represents roughly 21,000 positions eliminated globally. The US-based tech firm recorded $1.84 billion in restructuring costs, including severance payments and contract terminations, compared with $374 million in the prior fiscal year.
- 2025-05-31
- 162000 employees
- 2026-05-31
- 141000 employees
AI as a stated factor
For the first time, Oracle explicitly linked job reductions to artificial intelligence. "The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce," the filing states. The company also cautioned that restructuring can cause shortages of skilled workers and loss of institutional knowledge.
The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce.
Financial pressures amid cloud buildout
Oracle has been spending heavily to build data centres for customers like OpenAI and Meta. Capital expenditures reached $55.7 billion in the last fiscal year, and the company expects net capex of around $70 billion in the current year. To fund this, Oracle plans to raise another $40 billion through debt and equity, including a $20 billion stock issuance. Shares are down about 10% in 2026.
- FY 2025
- 374 $ million
- FY 2026
- 1840 $ million
A wider industry pattern
Oracle's cuts are part of a broader wave of tech layoffs even as many companies report record revenues. Layoffs.fyi estimates that 196 tech firms have cut more than 119,800 jobs so far in 2026. Outplacement firm Challenger, Gray & Christmas says AI was the most-cited reason for May layoffs. Amazon, Meta, Google, and GitLab have all trimmed workforces while aggressively expanding AI infrastructure.
More than 100,000 people at tech workers have been laid off in the past year.
Leadership and outlook
Oracle co-founder and CTO Larry Ellison, a close ally of President Trump, has steered the company into an aggressive cloud buildout. CEO Mike Sicilia said during a March earnings call that Oracle "is using the best AI coding tools and the best developers not only to accelerate our SaaS business, but to deliver solutions that enable entire ecosystems." The company warned that workforce reductions could continue as AI adoption deepens.
