The workforce of U.S. software giant Oracle contracted by about 21,000 people over the past fiscal year as the company reorganized operations around artificial intelligence and cloud infrastructure, according to its annual report.
Oracle said it had approximately 141,000 full-time employees as of May 31, down from 162,000 a year earlier, marking a decline of around 13% in its global workforce.
The company linked part of the reduction to the growing use of artificial intelligence across its operations.
"The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce," Oracle said in the filing.
The company also cited management changes, product transitions, performance issues, strategic shifts, acquisitions and other internal and external factors among the reasons for periodic workforce restructuring and reorganization.
The job cuts came as Oracle has been expanding its artificial intelligence and cloud infrastructure operations, including major investments in data centers and AI-related services.
The restructuring was also reflected in the company’s costs. Oracle’s severance and other exit costs rose to $1.84 billion in fiscal 2026, compared with $374 million in the previous fiscal year.
The company warned that restructuring efforts could disrupt operations, temporarily reduce productivity and create gaps in qualified staff for certain roles.
Oracle also said failure to keep investing in AI products and services could put the company at a competitive disadvantage, while higher-than-expected costs for developing and supporting AI products could make it harder to recover its investments.
The cuts come as major technology companies continue to pour large sums into AI infrastructure while also reducing labor costs, deepening concerns over the impact of artificial intelligence on employment across the sector.
According to Layoffs.fyi, which tracks job cuts in the technology industry, tech-sector layoffs worldwide have exceeded 121,000 so far this year.