Oracle has reduced its global workforce by 13% in fiscal 2026, cutting around 21,000 roles as it continues a broad restructuring drive influenced in part by artificial intelligence (AI) adoption across its operations.
The company’s annual filing, released on Monday, shows its headcount fell to 141,000 as of 31 May 2026, down from about 162,000 in the same period last year.
The reduction comes alongside a sharp rise in restructuring costs. Oracle spent $1.84 billion on severance payments and exit-related expenses in fiscal 2026, compared with $374 million in the previous year, reflecting the scale of its ongoing organisational changes.
In its filing, l said the workforce adjustments were driven by a mix of management changes, product restructuring, performance-related decisions, strategic shifts, and acquisitions.
The job cuts add to earlier reports this year indicating thousands of roles were already being eliminated as part of the restructuring programme.
Concerns over AI-driven disruption in the labour market are also growing more broadly. Data from Layoffs.fyi shows that 196 tech companies have cut more than 119,800 jobs so far this year.
Oracle, long considered a smaller player in cloud computing compared with rivals, has recently accelerated efforts to close the gap with major competitors. It has signed large-scale data centre agreements with OpenAI and Meta in a bid to strengthen its position against Amazon and Microsoft.
However, unlike some of its larger rivals that rely heavily on strong cash flows, Oracle has increasingly turned to debt markets and cash burn to fund expansion. Its shares have fallen by about 10% so far this year.
The company previously disclosed plans for around $70 billion in net capital expenditure in its current fiscal year, alongside intentions to raise $40 billion through a mix of debt and equity, including a previously announced $20 billion stock issuance.
