Oracle shed 21,000 jobs, almost 13% of its workforce, over the past year, reducing total headcount to 141,000 full-time employees as of May 2026 from 162,000 the previous year, according to the company's annual regulatory filing on Monday. The company attributed the workforce reduction to AI technology adoption, stating in the filing that "the adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce." The cuts come as major tech companies including Meta, Microsoft, Amazon, and Google carry out sweeping layoffs while simultaneously announcing capital expenditure plans that could reach $700 billion to fuel AI data center developments.
Oracle Reports 21,000 Job Cuts in Annual Regulatory Filing
Oracle's total workforce stands at 141,000 full-time employees as of May 2026, down from 162,000 employees at the same time the previous year, according to its annual regulatory filing on Monday. This represents an almost 13% cut in its total workforce. The company's stock was down 3% in premarket trading and is down 15.4% since the beginning of the year.
Oracle told employees in March that it was cutting thousands of jobs as it faced investor pressure over raising huge amounts of debt for its AI infrastructure buildout.
Company Spends $1.8 Billion on Restructuring Costs
Oracle spent $1.8 billion on restructuring costs, including severance payments and other exit costs, a jump from the $374 million it spent on restructuring the previous year. The company noted in its filing that the workforce changes can be "disruptive," including the increased restructuring costs and reduced productivity.
"These types of restructurings may also lead to shortages of sufficiently skilled employees in certain roles, loss of valuable institutional knowledge, and damage to employee morale and retention," Oracle stated in the filing.
Oracle Raises $50 Billion Amid Negative Free Cash Flow
In January, Oracle announced plans to raise $50 billion in debt and equity. The company's free cash flow in the last fiscal year came in at negative $23.7 billion, while capital expenditure jumped 162% to $55.7 billion.
Oracle joins several tech giants, including Meta, Google, Microsoft and Amazon, who have announced capex plans that could reach $700 billion to fuel their AI data center developments.
Tech Giants Cut Over 50,000 US Jobs in 2025
Meta laid off 8,000 employees, or 10% of its workforce in May, with CEO Mark Zuckerberg telling employees that "success isn't a given" in the age of AI. Microsoft started offering voluntary buyouts to 7% of U.S. employees in April.
AI was responsible for over 50,000 layoffs in the U.S. in 2025, with major firms including Salesforce and IBM slashing thousands of roles.
FAQ
What did Oracle announce in its regulatory filing on Monday?
Oracle disclosed in its annual regulatory filing on Monday that it shed 21,000 jobs over the past year, reducing its total workforce from 162,000 to 141,000 full-time employees as of May 2026, representing almost a 13% cut.
Why did Oracle cut 21,000 jobs?
Oracle attributed the workforce reduction to AI technology adoption, stating in its regulatory filing that "the adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce."
How much did Oracle spend on restructuring costs?
Oracle spent $1.8 billion on restructuring costs, including severance payments and other exit costs, which was a significant increase from the $374 million it spent on restructuring the previous year.
