Artificial intelligence is helping companies to become more efficient, but for many workers, it is also becoming a source of deep uncertainty. Oracle is the latest example of this shift. The US technology giant cut around 21,000 jobs globally in fiscal 2026 as it reshapes its business around artificial intelligence, according to its latest annual report. The company's workforce fell by 13 per cent, dropping from about 162,000 employees last year to 141,000 as of 31 May 2026.
Worryingly for staff, Oracle indicates that the changes may not stop there. In its annual report released on Monday, the company stated that the deployment of AI technologies across its operations has already led to workforce reductions and could well result in further job cuts in the future. Management noted that the deployment of these technologies has resulted, and may continue to result, in reductions to its workforce. They added that the adjustments were driven by several combined factors, including management and product changes, performance issues, strategic shifts, and acquisitions.
The company had already signalled major disruptions earlier this year. In March, Oracle announced plans to cut thousands of jobs as it grappled with a cash crunch brought on by its massive AI data centre expansion effort.
Oracle is no longer just a database software provider. Led by Chairman Larry Ellison, the business is in the middle of one of the biggest transformations in its history as it races to become a major player in artificial intelligence and cloud computing. In this regard, Oracle is currently building very large data canters, which will be able to meet the needs of its crucial customers in terms of the workload, such as OpenAI.
Oracle is directly competing against other leading companies such as Amazon and Microsoft, which dominate the market in the field of cloud computing services. However, this is where the key difference exists. Unlike Amazon and Microsoft, which generate massive cash flows to fund their investments, Oracle has had to rely on burning through its own cash reserves and raising substantial debt to finance its ambitions.
Earlier this month, the company said it expects net capital expenditure of around $70 billion in the current fiscal year. To help fund that eye-watering spend, Oracle plans to raise another $40 billion through debt and equity, which includes a previously announced stock issuance worth $20 billion.
This aggressive pivot towards AI has certainly not come cheap. Oracle spent $1.84 billion on severance payments and other exit costs related to restructuring activities during fiscal 2026. According to the regulatory filing, that is significantly higher than the $374 million it spent on similar costs in the previous fiscal year.
Also read: Oracle cuts 30,000 jobs globally; 12,000 hit in India
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