US software and cloud computing company Oracle has eliminated approximately 21,000 jobs worldwide over the past year, as a result of a restructuring of its operations around artificial intelligence.
Last year’s annual report showed 141,000 full-time employees as of 31 May 2026, compared with around 162,000 a year earlier.
This striking reduction represents about 13% of Oracle’s global workforce.
In its filing, Oracle admitted that the increasing use of AI throughout its business has already contributed to workforce reductions and could lead to further job cuts in the future.
Employment-tracking estimates suggest that more than 100,000 technology workers have lost their jobs over the past year.
Although reports from employees indicated that Oracle carried out substantial layoffs in April, the company’s annual report provides the first comprehensive picture of the scale of the cuts.
Oracle said the restructuring resulted in approximately $1.8 billion in severance payments and other related expenses during the financial year — a figure sharply higher than the $374 million spent on restructuring in the previous year.
Earlier reporting indicated that Oracle plans to invest at least $50 billion in infrastructure during the current year.
The company acknowledged that organisational changes can create disruption and warned that the overhaul could leave some positions understaffed, potentially reducing productivity and affecting future financial performance.
The layoffs reflect a broader shift across the technology sector, where companies are directing massive sums into AI-related infrastructure — major firms such as Amazon and Meta have also announced thousands of layoffs while expanding their AI investments into data centres.
Amazon, for instance, has announced plans to spend roughly $200 billion on AI projects over the coming year: more than any other major technology company. However, Amazon is also cutting around 30,000 jobs through multiple rounds of layoffs.
