Oracle reduced its global workforce by about 13% during its 2026 fiscal year, eliminating roughly 21,000 jobs as the company continued a broad restructuring of its business, according to its latest annual report filed with regulators.
The cloud software company employed approximately 141,000 people as of May 31, 2026, compared with about 162,000 employees a year earlier. The decline follows a series of workforce reductions reported earlier this year and reflects changes across several parts of the business.
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Oracle said in its filing that the restructuring was driven by a combination of management and product changes, employee performance issues, strategic business shifts, acquisitions and, in part, the adoption of artificial intelligence. The company did not specify how many positions were affected by each factor or identify the business units involved. Oracle did not immediately respond to Reuters‘ request for comment on the matter.
The restructuring resulted in $1.84 billion in severance payments and other exit-related costs during fiscal 2026, a significant increase from $374 million reported in the previous fiscal year. The charges were disclosed in Oracle’s annual report and reflect costs associated with the company’s organizational changes.
The workforce reduction comes as Oracle continues to expand its cloud infrastructure business to meet growing demand for AI computing services. In recent months, the company has announced major data center agreements with customers including OpenAI and Meta, adding to its efforts to compete in the rapidly expanding market for AI-powered cloud services.
Earlier this month, Oracle said it expects net capital expenditures of about $70 billion during the current fiscal year as it builds additional cloud infrastructure. To help finance those investments, the company plans to raise approximately $40 billion through debt and equity offerings, including a previously announced $20 billion stock sale.
Oracle’s investment plans underscore the substantial spending required to build and operate data centers capable of supporting advanced AI workloads. Technology companies across the industry have increased infrastructure spending as demand grows for computing power used to train and deploy AI models.
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The company’s workforce reduction also reflects a broader trend across the technology sector. According to data compiled and cited by Reuters, 196 technology companies have announced more than 119,800 job cuts so far this year. Many companies have cited restructuring efforts, changing business priorities and increasing use of artificial intelligence as factors behind workforce reductions.
Despite the job cuts, Oracle continues to invest heavily in expanding its cloud business, positioning the company to capitalize on rising demand for AI infrastructure while reorganizing its workforce to align with its evolving business strategy.