Oracle Layoffs Hit 21,000 as AI Spending Grows and Stock Slides

Oracle has reduced its workforce by approximately 21,000 employees over the past year, bringing its total headcount to 141,000 employees as of May 31, down from 162,000 a year earlier.

The layoffs, which represent a 13% workforce reduction, were disclosed in the company's latest annual filing, where Oracle said artificial intelligence adoption was among several factors contributing to the cuts. The company also cited strategic shifts, management changes, product adjustments, acquisitions, and performance-related decisions.

“The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” Oracle said in a June 22 regulatory filing.

Its restructuring also came at a high cost, with severance and related expenses rising to approximately $1.84 billion during the fiscal year, compared to $374 million a year earlier.

Why is Oracle laying off employees?