Oracle shed 21,000 roles over the past year amid wave of AI layoffs from tech giants

In a significant shift, Oracle has reduced its workforce by 21,000 positions over the past year, accounting for nearly 13% of its total employees. According to the company’s latest annual regulatory filing, Oracle currently employs 141,000 full-time staff as of May 2026, down from 162,000 the previous year. This drastic cut aligns with a broader trend among technology giants implementing layoffs due to the rapid integration of artificial intelligence in operations. Recently, Oracle's stock experienced a 3% decline in premarket trading, reflecting a 15.4% drop since the start of the year, amid a wider tech market downturn. Oracle attributed these workforce reductions to the deployment of AI technologies, which have led to a reassessment of staffing needs. The company reported spending $1.8 billion on restructuring costs this past year, including severance and related expenses, a substantial increase from the $374 million incurred the previous year. The impact of these layoffs is multifaceted. Oracle acknowledged that restructuring can be disruptive, potentially leading to a lack of skilled workers in certain areas, the loss of institutional knowledge, and a decline in employee morale and retention. Earlier this year, Oracle communicated to its workforce about impending job cuts driven by mounting investor pressure linked to its substantial debt for AI infrastructure. The tech giant announced plans to raise $50 billion through debt and equity offerings. In the previous fiscal year, Oracle's free cash flow fell to negative $23.7 billion, while capital expenditures surged by 162% to reach $55.7 billion. Oracle is not alone in this trend; it joins other major tech companies like Meta, Google, Microsoft, and Amazon, which have collectively announced capital expenditure plans that could total $700 billion for AI data center enhancements. For instance, Meta laid off 8,000 employees, reflecting 10% of its workforce, while Microsoft offered voluntary buyouts to 7% of its U.S. employees. Last year, AI-related layoffs in the U.S. exceeded 50,000, with companies like Salesforce and IBM also making significant cuts. CNBC has reached out to Oracle for further comments.