Oracle reduces workforce by 21,000 employees in fiscal year 2026

Oracle’s annual report for fiscal year 2026 reveals a workforce reduction of approximately 21,000 employees, representing a 13% decline. The company employed 141,000 people as of May 31, 2026, compared to 162,000 the previous year. Oracle attributed these changes to strategic restructuring, management shifts, and the integration of artificial intelligence across its operations. Severance and restructuring costs reached $1.84 billion, a significant increase from $374 million in the prior fiscal year. The company warned that further restructuring could cause potential productivity losses due to shortages of skilled labor. Meanwhile, the broader technology sector has seen over 100,000 layoffs this year, with companies like Amazon and Meta also adjusting staff levels to fund AI infrastructure. Oracle continues to pursue large-scale cloud deals with partners like OpenAI and Meta while relying on debt to finance its expansion.