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AI · Cloud Computing · Layoffs · Oracle
Oracle, the software and cloud computing company, reduced its global workforce by 21,000 employees, representing nearly 13% of its staff, over the past year as it realigns its business strategy towards artificial intelligence (AI) and cloud infrastructure investments.
The company reported approximately 141,000 full-time employees as of May 31, 2026, down from 162,000 a year prior. Oracle stated that AI deployment across its operations contributed to these reductions and will influence future staffing.
This restructuring incurred approximately $1.8 billion in severance and associated costs during the last financial year, a significant increase from $374 million in the previous fiscal year. Oracle is accelerating investments in cloud infrastructure and AI-related services, planning to spend at least $50 billion on infrastructure this year to expand data centers and computing capacity.
The company collaborates with major AI firms like OpenAI and Meta, providing large-scale cloud infrastructure. This workforce reduction reflects a broader industry trend, with companies such as Amazon, Google, and Meta also announcing layoffs to redirect resources toward AI development and infrastructure.
Industry estimates indicate over 100,000 technology workers have been laid off globally in the past year due to AI adoption and changing business priorities.