Oracle sheds 21,000 jobs to fund $70 billion AI push
A Form 10-K filing reveals the US tech firm cut 13% of its staff over the past year, a move that coincides with an 11% year-to-date decline in its share price.
Oracle has reduced its global workforce by 21,000 employees, representing a 13 per cent decrease over the past year, to help fund a $70 billion artificial intelligence expansion. The company disclosed in its latest Form 10-K filing with the US Securities and Exchange Commission that AI adoption has directly resulted in these workforce reductions, leaving 141,000 full-time employees as of May 2026.
The filing details a significant contraction in headcount compared to the previous year. In its annual report for May 2025, Oracle stated it had 162,000 employees. By May 2026, that figure had dropped to 141,000, comprising 49,000 staff in the United States and 92,000 employed internationally. The company explicitly linked the reductions to technological shifts, stating that the adoption and deployment of AI technologies across its operations have resulted, and may continue to result, in workforce cuts.
This restructuring occurs against a backdrop of massive capital expenditure across the technology sector. Oracle is not alone in prioritising AI infrastructure; industry peers including Meta and Microsoft have also initiated layoffs or voluntary buyouts this year. Collectively, these tech giants have pledged to spend a combined $700 billion on building AI data centres and related technology in 2026, with AI responsible for over 50,000 layoffs globally in 2025 alone.
Despite the strategic pivot, Oracle acknowledged the inherent risks associated with these restructurings in its regulatory filing. The company warned that such moves could lead to reduced productivity, shortages of sufficiently skilled employees in certain roles, loss of valuable institutional knowledge, and damage to employee morale and retention. Nevertheless, the filing indicated that Oracle intends to continue making adjustments to its workforce in the future.
Market reaction to the strategy has been subdued, with Oracle’s share price underperforming major US indices. Shares in the company (NYSE: ORCL) have declined approximately 11 per cent since the start of the year, trading around $174 per share. This performance sits well below the stock’s all-time high of over $345 reached in September last year. Over the past 12 months, Oracle’s share price has fallen by more than 16 per cent, lagging behind the Dow, which rose more than 21 per cent, the S&P 500, which gained more than 22 per cent, and the Nasdaq, which climbed more than 31 per cent.
