Oracle cuts 21,000 jobs as it expands infrastructure for artificial intelligence
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Oracle has reduced its workforce by approximately 21,000 positions over the past year to support a shift toward AI technologies. The reorganization follows increased spending on data centers for major clients such as Meta and OpenAI.
Amalgamated from Yahoo Finance (opens in new tab), Yahoo Finance (opens in new tab), NDTV (opens in new tab), Slashdot (opens in new tab)
Oracle has reduced its workforce by roughly 21,000 positions over a 12-month period as it shifts focus toward artificial intelligence infrastructure. Reports from Yahoo Finance and NDTV indicate that these job cuts coincide with increased spending on data centers to support major clients such as Meta and OpenAI.
The reorganization is estimated to have cost the company approximately $1.8 billion, according to reporting by Slashdot. The firm's full-time employee count fell from about 162,000 in mid-2025 to roughly 141,000 as of May 31, 2026, as reported by the BBC.
While Oracle stated that the integration of AI may drive further staffing reductions, the company also warned of potential risks regarding workforce expertise. The firm noted that these cuts could create skills shortages and negatively impact productivity. These warnings highlight a concern cited by the company over balancing automated systems with the retention of specialized knowledge for its cloud computing and software services.