Oracle's total workforce declined 13%, or about 21,000 employees, in fiscal 2026, as the cloud computing giant continued restructuring its business, partly driven by the adoption of AI across its operations.

The company had a total workforce of 141,000 as of May 31, 2026, compared with about 162,000 as of the ‌same period last ⁠year, ⁠according to its annual report released on Monday.

Oracle spent $1.84 billion in severance payments and ​other exit costs related to the restructuring activities in fiscal 2026, significantly higher ​than the $374 million spent in the previous fiscal year, the filing showed.


It also said in its filing that the workforce adjustments were in ​response to various factors, including management and ⁠product changes, performance ‌issues, strategic shifts and acquisitions.

The decline in the ​workforce follows ​multiple reports earlier this year about Oracle cutting thousands ⁠of jobs. The company did not respond to a ​Reuters request for comment.

Worries are quickly mounting over ​job losses due to AI disruption, as 196 tech companies laid off more than 119,800 employees so far this year, according to Layoffs. fyi, a website tracking sector-wide job cuts.

A smaller player in the cloud-computing industry for a long time, Oracle has in recent months signed ‌massive data-center deals with OpenAI and Meta to compete more forcefully with rivals such as Amazon and Microsoft.

However, ​unlike these tech ​giants who fund ⁠their substantial outlays through large cash flows, Oracle has had to resort to burning cash and issuing debt. Shares of the company were down ​about 10% this year.

Oracle said earlier this month that it expects net capital expenditure of around $70 billion in its current fiscal year. To fund that, it will raise another $40 billion in debt and equity, including a previously announced $20 billion stock issuance.