Oracle cuts 13% of workforce in fiscal 2026 amid AI-driven restructuring

• 196 tech companies have laid off more than 119,800 employees so far this year, per Layoffs.fyi.

Oracle’s total headcount fell 13 per cent in fiscal 2026—down about 21,000 employees to 141,000 as of May 31—as the company accelerated a broad restructuring tied in part to AI adoption across its operations, according to its annual report.

The company spent $1.84 billion on severance and other exit costs in fiscal 2026, up sharply from $374 million a year earlier. Oracle said workforce adjustments reflected management and product changes, performance issues, strategic shifts, and acquisitions.

The reductions follow reports earlier this year of thousands of job cuts at Oracle and come amid sector-wide concern over AI-related disruption: 196 tech companies have laid off more than 119,800 employees so far this year, per Layoffs.fyi.

Long a smaller player in cloud computing, Oracle has recently inked major data-centre deals with OpenAI and Meta to better compete with Amazon and Microsoft. Unlike those rivals, which fund large buildouts from robust cash flows, Oracle has leaned on cash burn and new financing; its shares are down about 10 per cent year to date.

Earlier this month, Oracle guided to roughly $70 billion in net capital expenditures for the current fiscal year and said it plans to raise about $40 billion in debt and equity, including a previously announced $20 billion stock issuance.