Tech giant Oracle cuts 21,000 jobs as it embraces AI

Oracle has shed approximately 21,000 jobs globally over the past year as it shifts its focus to artificial intelligence, according to the company’s latest annual report.

The technology giant reported a workforce of 141,000 full-time employees as of May 31, 2026, down from 162,000 a year earlier, representing a reduction of about 13%.

The report states that the deployment of AI technologies across its operations has resulted in workforce reductions and may continue to do so.

This move aligns with a broader trend in the tech industry, where companies like Amazon and Meta have also announced significant layoffs while investing heavily in AI infrastructure and data centres.

More than 100,000 technology workers have been laid off in the industry over the past year, according to employment tracking firms.

Oracle had previously indicated significant job cuts in April, but the full scale was not disclosed until the annual report.

The restructuring has incurred approximately $1.8 billion in severance and related costs over the past year, a substantial increase from the $374 million in the previous financial year.

Oracle warned that the restructuring could be disruptive and might lead to shortages of skilled workers in certain roles, potentially affecting productivity and earnings.

The company is in a race to build data centres for AI leaders such as OpenAI and Meta, having previously announced plans to spend at least $50 billion on infrastructure this year.

Co-founder Larry Ellison, who serves as Oracle’s chief technology officer, remains one of the world’s wealthiest individuals.

Industry analysts note that Google, Amazon and Meta collectively plan to invest around $650 billion in technology this year, with Amazon alone allocating $200 billion for AI investments over the next year.

An Amazon executive reportedly stated in an internal memo last October that the company needed to operate more leanly to keep pace with the speed of innovation enabled by AI.

This trend reflects a broader shift in the tech sector, where workforce reductions are often tied to major investments in emerging technologies like AI.

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