Oracle cut about 13% of its global workforce as AI-driven reorganization costs rose and capital spending surged alongside a sharp expansion in cloud and AI commitments.
Oracle cut nearly 21,000 jobs over fiscal 2026, reducing its global workforce by about 13% to roughly 141,000 employees as it ramped up spending on AI infrastructure and reorganized operations around cloud and AI businesses. In its annual SEC filing, the company said deployment of AI technologies across its operations has resulted, and may continue to result, in workforce reductions. The restructuring cost about $1.8 billion in severance and related charges, while capital expenditures jumped 162% to $55.7 billion, helping push free cash flow to negative $23.7 billion. Oracle also reported remaining performance obligations of $638 billion, up from $138 billion a year earlier, with a five-year, $300 billion agreement to provide data center capacity to OpenAI accounting for a significant share. The move comes as other large technology companies, including Amazon, Alphabet, Meta and Microsoft, also increase AI-related infrastructure spending while cutting jobs.