Oracle cuts roughly 21,000 jobs in FY 26 amid expanded AI push

Oracle has implemented a significant reduction in its workforce, cutting approximately 21,000 jobs, which represents 13% of its total global staff. This move is part of a larger restructuring effort aimed at enhancing the company's adoption of Artificial Intelligence (AI) across its operations while also increasing investments in this area. According to the company’s annual report released on June 22, Oracle's workforce dropped to 141,000 as of May 31, 2026, down from roughly 162,000 the previous year. The tech giant disclosed that it will incur over $1.84 billion in severance costs and related expenses due to office closures, contract terminations, and other restructuring initiatives. This marks a stark increase from $374 million spent in the previous fiscal year, highlighting the extent of the organizational changes underway at Oracle. The rationale behind these layoffs includes shifts in product priorities, evaluations of employee performance, and strategic realignments. Oracle has acknowledged that the implementation of AI technologies throughout its operations has led to, and may continue to lead to, workforce reductions. This confirmation aligns with prior speculations regarding layoffs within the company on a global scale. Reports indicate that India has been significantly affected, with over 12,000 employees impacted by the layoffs. Additionally, Oracle has rescinded job offers to recent graduates from prestigious institutions like IITs and NITs in India, further extending the reach of its restructuring decisions. While the company is trimming its workforce, it is simultaneously planning substantial investments in its cloud and AI sectors, projecting to spend over $70 billion this year. To facilitate these ambitions, Oracle aims to raise an additional $40 billion through a combination of debt and equity, including a $20 billion stock offering already announced. This dual approach of cutting jobs while investing heavily in new technology illustrates the complex challenges Oracle faces in the rapidly evolving tech landscape.