AI workforce: Oracle has cut around 21,000 jobs globally over the past year as artificial intelligence reshapes its operations and accelerates wider restructuring across the technology sector.
The US software and cloud computing giant said its full-time workforce fell to about 141,000 as of May 2026, down from 162,000 the previous year, according to its latest annual report.
The company said the “deployment of AI technologies across our operations” had already contributed to workforce reductions and could continue to do so in future.
World Cup hydration breaks: Fans question timing as tech boom grows
The cuts represent roughly 13% of staff and form part of a broader industry trend as major tech firms redirect spending towards artificial intelligence infrastructure, particularly large-scale data centres.
Oracle said restructuring costs linked to the layoffs reached about $1.8bn, significantly higher than the previous year, reflecting severance payments and organisational changes.
The company, co-founded by billionaire Larry Ellison, has been investing heavily in AI-focused cloud capacity, competing with rivals to support firms such as OpenAI and Meta.
Oracle warned that rapid restructuring could create skill shortages in some areas, potentially affecting productivity and financial performance.
The layoffs come amid similar moves across the sector, with companies including Amazon and Meta also reducing headcount while increasing AI investment budgets.
Industry-wide, more than 100,000 tech jobs have been cut over the past year, as firms prioritise spending on computing infrastructure and automation.
Analysts say the shift reflects a structural transformation in Silicon Valley, where AI development is now driving both hiring cuts and massive capital investment.
