Oracle Fired 21,000 Workers Within a Year for AI

Oracle’s global workforce fell by around 21,000 during its latest financial year as the company restructured its operations and increased its use of artificial intelligence.

The company employed approximately 141,000 people worldwide as of May 31, 2026, according to its annual regulatory filing. That was down from 162,000 employees at the same point last year.

The figures provide a clearer picture of Oracle’s workforce reduction after reports in March claimed that between 10,000 and 30,000 employees had received emails informing them that it was their final day at the company.

Workforce Falls

Oracle currently employs around 49,000 people in the United States and 92,000 in other countries.

The filing does not show how many US employees were laid off or confirm that the entire 21,000-person reduction came from layoffs. The year-on-year change represents the overall decline in Oracle’s workforce.

AI Linked To Reductions

Oracle said it has an existing restructuring plan and will continue making changes to its workforce.

The company also acknowledged that adopting and deploying AI technologies across its operations has resulted in workforce reductions and may lead to further cuts.

Oracle has spent approximately $1.8 billion on restructuring costs, including severance payments for employees who lost their jobs.

Data Center Spending

Bloomberg previously reported that Oracle cut thousands of positions to keep more cash available for its AI data center expansion.

The company is building data centers for customers, with OpenAI among its largest clients.

OpenAI reached an agreement with Oracle last year to develop 4.5 gigawatts of additional data center capacity in the United States. The facilities will provide the computing power required to operate large AI models.

Wider Industry Cuts

Other technology companies have also reduced their workforces while spending heavily on AI infrastructure.

Microsoft has cut jobs as it faces the high upfront cost of building AI systems and data centers. Meta has also laid off 8,000 employees and reassigned another 7,000 workers to AI-focused roles.