Oracle Sheds 13% of Workforce in Year of AI Expansion

Oracle, led by its billionaire co-founder and CTO Larry Ellison, has significantly reduced its global workforce, cutting approximately 21,000 jobs, which amounts to 13% of its total staff over the last fiscal year. The company disclosed these figures in its latest annual report, framing the layoffs as part of a strategic restructuring to streamline operations and exit certain business lines.

As of May 31, 2026, Oracle reported a total of approximately 138,000 full-time employees, a decrease from the 159,000 employees recorded just one year prior. The company indicated that these restructuring efforts have already incurred significant expenditures, totaling $486 million for severance packages and exit costs. Oracle's filing also suggested that further job reductions may occur as the company continues to review its operations and integrate acquired businesses.

The database and cloud computing giant's workforce reduction aligns with a broader trend among major technology companies that are simultaneously investing heavily in artificial intelligence. Oracle joins companies such as Meta, Google, Microsoft, and Amazon, which have also announced substantial layoffs while dedicating significant capital towards AI infrastructure and data center buildouts. For instance, Meta laid off 8,000 employees, or 10% of its workforce, in May, and Microsoft offered voluntary buyouts to 7% of its U.S. employees in April.

Larry Ellison, who co-founded Oracle in 1986, has seen his net worth grow substantially amid the recent AI hype, reportedly reaching $173 billion and securing his position as the sixth wealthiest individual globally, according to Forbes. The company had previously warned in March about potential job cuts as it faced investor pressure related to its substantial debt financing for AI development.