Key facts
- Oracle reduced its global workforce by approximately 21,000 employees over the past year.
- The company stated in its annual report that the 'deployment of AI technologies' led to 'reductions to our workforce.'
- These cuts represent about 13% of Oracle's total headcount.
- Oracle incurred approximately $1.8 billion in severance payments and other restructuring costs.
- The company plans to raise $45 billion to $50 billion to expand its Oracle Cloud Infrastructure for AI customers.
Software giant Oracle has reduced its global workforce by approximately 21,000 employees over the past year as it accelerates its adoption of artificial intelligence technologies. The company stated in its annual report that the 'deployment of AI technologies' led to 'reductions to our workforce.' These cuts represent about 13% of Oracle's total headcount. The job cuts are also tied to large capital expenditure to build Oracle’s data center infrastructure to support AI workloads. Oracle plans to raise $45 billion to $50 billion in 2026 to expand its Oracle Cloud Infrastructure for customers like OpenAI, xAI, AMD, Nvidia, and Meta. The company spent $1.8 billion on restructuring costs in its fiscal year, a 481 percent increase from the prior fiscal year’s $374 million. AI is increasingly cited by companies as a reason for job cuts, with technology being the primary industry citing it.