Oracle has cut more than 21,000 jobs worldwide over the past year as it increases its focus on Artificial Intelligence and cloud infrastructure. The company is also planning to invest around $70 billion in AI-related infrastructure this fiscal year to meet rising demand from customers, including OpenAI. The move reflects Oracle’s broader strategy to strengthen its position in the fast-growing AI and cloud computing market.
Oracle has reduced its global workforce by more than 21,000 employees over the past year as the company continues its transformation around Artificial Intelligence. According to its latest annual filing, Oracle had 141,000 full-time employees as of May 31, 2026, compared to 162,000 a year earlier.
The company said that the growing adoption of AI technologies across its operations has played a role in the workforce reduction and could continue to affect staffing levels going forward. Oracle also incurred approximately $1.8 billion in restructuring costs related to these changes.
Oracle Doubles Down on AI Infrastructure
While trimming its workforce, Oracle is significantly expanding its investments in AI and cloud infrastructure. The company expects to spend about $70 billion in capital expenditure this fiscal year, largely focused on building data centres and supporting growing demand for AI services. Oracle has emerged as a key infrastructure provider for major AI companies, including OpenAI.
The rapid expansion is also placing greater financial demands on the company. Oracle plans to fund much of its AI spending through a mix of debt and equity financing as it competes with other technology firms racing to build AI capabilities. The company has also warned that its restructuring efforts could create operational challenges and affect productivity if some roles remain vacant during the transition.
Oracle’s latest workforce reduction reflects a wider trend across the technology industry, where companies are streamlining operations while directing more resources toward Artificial Intelligence. As AI adoption accelerates, businesses are increasingly investing in next-generation infrastructure and adjusting their workforce strategies to support long-term growth.
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