Oracle reduced its global workforce by around 21,000 employees, or 13%, during its 2026 fiscal year, according to the company’s annual report released on Monday. The cloud computing giant attributed the cuts to restructuring efforts partly driven by the adoption of artificial intelligence across its operations.

The total headcount stood at 141,000 as of May 31, 2026, down from approximately 162,000 a year earlier. Oracle spent $1.84 billion on severance and exit costs related to the restructuring, a sharp increase from $374 million in the prior fiscal year. The filing noted that management changes, product shifts, performance reviews, and acquisitions influenced the workforce adjustments.

The decline marks the first time Oracle’s workforce has dipped below 150,000 in four years, Reuters reported. The company did not respond to Reuters' request for comment.

Oracle, long a smaller player in cloud computing, has recently struck large data-centre agreements with OpenAI and Meta as it attempts to compete more aggressively with Amazon and Microsoft. Unlike those rivals, however, Oracle lacks the cash flow to fund its expansion without resorting to debt, as per the Reuters report. The company said earlier this month that it expects net capital expenditure of roughly $70 billion in the current fiscal year and plans to raise an additional $40 billion through debt and equity.

The layoffs add to a broader wave of technology job losses. According to the layoffs tracker website Layoffs.fyi, 196 tech firms have let go of more than 119,800 employees so far in 2026, with AI disruption cited as a growing factor.