Hyderabad: Oracle layoffs affected about 21,000 employees worldwide during the 2026 financial year as the US technology company accelerated its expansion in artificial intelligence and cloud computing.
The company disclosed the workforce reduction in its annual report. Oracle said it took the decision as part of business restructuring and the wider adoption of AI-driven operations.
The company had 162,000 employees a year earlier. However, that figure fell to 141,000 as of May 31, 2026. The reduction represented nearly 13 per cent of Oracle’s global workforce.
Oracle said the growing use of AI technologies had already contributed to job cuts. It also indicated that similar reductions could continue in the future.
Oracle layoffs come amid major AI investment plans
Meanwhile, Oracle continued to increase its focus on AI and cloud computing. The company is no longer concentrating only on database software. Instead, it is investing heavily to strengthen its position in emerging technology sectors.
In addition, Oracle is involved in building large-scale data centres to support the requirements of companies such as OpenAI. For that purpose, the company said it plans capital expenditure of about $70 billion during the current financial year.
To support these projects, Oracle is considering raising another $40 billion through debt and equity. However, the scale of the AI investments is also increasing financial pressure on the company.
The company spent $1.84 billion during the 2026 financial year on restructuring and workforce reductions. By comparison, the expenditure stood at $374 million in the previous year.
The sharp increase in restructuring costs came as Oracle expanded its AI infrastructure and continued its business reorganisation efforts.