Oracle Corp (NYSE:ORCL, XETRA:ORC) has reduced its workforce by about 21,000 employees over the past year, citing the deployment of artificial intelligence technologies across its operations, according to its annual filing.
The software and cloud company employed approximately 141,000 full-time workers as of May 31, 2026, compared with about 162,000 a year earlier, a decline of nearly 13%.
"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.
Oracle reported $1.8 billion in restructuring costs during the fiscal year, including severance payments and other exit expenses, up from $374 million in the prior year.
The company noted that workforce reductions can be disruptive and may lead to lower productivity, shortages of skilled employees in some roles, loss of institutional knowledge, and weaker employee morale and retention.
Oracle had informed employees in March that it planned to eliminate thousands of positions as it faced investor scrutiny over increased borrowing to support its AI infrastructure expansion. In January, the company announced plans to raise $50 billion through debt and equity financing.
Capital expenditures rose 162% in the latest fiscal year to $55.7 billion, while free cash flow was negative $23.7 billion.
Shares of Oracle traded down almost 3% at Tuesday’s opening bell, down about 13% so far this year.