Oracle reduced its workforce to 13 percent fewer employees compared to last year.
Oracle employed approximately 141,000 people as of May 31, 2026, compared to 162,000 the previous year, according to an annual report. The company cut 21,000 jobs this year alone, which also had an immediate impact on the stock price. Oracle shares have fallen since the report’s publication on Monday, June 22. In April of this year, the company dismissed thousands of employees via email. AI is the primary driver behind this reduction in staff.
13 percent fewer staff
As part of new restructuring measures, Oracle has already made significant cuts to its workforce for the 2026 fiscal year. Approximately 21,000 jobs were eliminated. According to the company, several factors are at play, such as management and product changes, strategic shifts, acquisitions, and, of course, AI adoption.
Since the publication of the annual report, Oracle’s shares have fallen significantly. At the time of writing, shares are at $175.07, representing a five percent decrease.
AI adoption
Furthermore, Oracle spent $1.84 billion on severance pay and exit costs related to the 2026 fiscal year. That amount is notably higher than the $374 million spent in the previous 2025 fiscal year.
There is a general trend of AI-related layoffs within the tech sector. Employees increasingly fear that this new technology will cost them their jobs. For instance, Arctic Wolf recently cut 250 jobs, as did Cloudflare with 1,000 jobs.