Oracle’s total workforce declined 13 per cent, or about 21,000 employees, in fiscal 2026, as the cloud computing giant continued restructuring its business, partly driven by the adoption of AI across its operations.
The company had a total workforce of 141,000 as at May 31, 2026, compared with about 162,000 as of the same period in 2025, according to its annual report released on June 22.
Oracle spent US$1.84 billion (S$2.38 billion) in severance payments and other exit costs related to the restructuring activities in fiscal 2026, significantly higher than the US$374 million spent in the previous fiscal year, the filing showed.
It also said in its filing that the workforce adjustments were in response to various factors, including management and product changes, performance issues, strategic shifts and acquisitions.
The decline in the workforce follows multiple reports earlier in 2026 about Oracle cutting thousands of jobs. The company did not respond to a Reuters request for comment.
Worries are quickly mounting over job losses due to AI disruption, as 196 tech companies laid off more than 119,800 employees so far in 2026, according to Layoffs.fyi, a website tracking sector-wide job cuts.
A smaller player in the cloud-computing industry for a long time, Oracle has in recent months signed massive data centre deals with OpenAI and Meta to compete more forcefully with rivals such as Amazon and Microsoft.
However, unlike these tech giants who fund their substantial outlays through large cash flows, Oracle has had to resort to burning cash and issuing debt. Shares of the company were down about 10 per cent in 2026.
Oracle said earlier in June that it expects net capital expenditure of around US$70 billion in its current fiscal year. To fund that, it will raise another US$40 billion in debt and equity, including a previously announced US$20 billion stock issuance. REUTERS
