The logo of software and hardware manufacturer Oracle can be seen at its German headquarters.
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oracle The company has cut 21,000 jobs, or about 13% of its workforce, over the past year, as the tech giant implements significant layoffs due to AI.
The company said in its annual regulatory report on Monday that its total workforce was 141,000 full-time employees as of May 2026. This is down from 162,000 employees in the same period last year. This represents a reduction of almost 13% in the total workforce.
Oracle stock last fell 3.6% in premarket trading and is down 15.4% since the beginning of the year. The decline followed a global decline in tech stocks.
Oracle’s year-to-date share.
“The adoption and implementation of AI technology across our businesses has resulted in, and may continue to result in, workforce reductions,” Oracle said in its filing.
The company spent $1.8 billion in restructuring costs, including severance and other exit costs, up from $374 million in restructuring costs a year earlier.
Oracle noted that workforce changes could be “disruptive,” including increased restructuring costs and reduced productivity.
“This type of restructuring can lead to a lack of sufficiently skilled employees in specific roles, loss of valuable organizational knowledge, and reduced employee morale and retention,” the report said.
In March, Oracle told employees it would cut thousands of jobs as it faces investor pressure to raise massive debt to build out its AI infrastructure.
In January, Oracle announced plans to raise $50 billion in debt and equity. Meanwhile, free cash flow was negative $23.7 billion last year, but capital expenditures increased 162% to $55.7 billion.
Oracle joins several technology giants including: meta, google, microsoft and Amazonannounced a capital investment plan this year that could reach $700 billion to accelerate the development of AI data centers.
Meta laid off 8,000 employees, or 10% of its workforce, in May, and CEO Mark Zuckerberg told employees that “success cannot be taken for granted” in the age of AI. Meanwhile, Microsoft began a voluntary buyout of 7% of its U.S. workforce in April.
In 2025, AI will result in more than 50,000 layoffs in the US, including at major companies such as: sales force and IBM Eliminate thousands of roles.
CNBC has reached out to Oracle for comment.
