Massive layoffs at Oracle: 21,000 employees lose their jobs; the crisis could deepen further due to AI..

While Artificial Intelligence (AI) promises to enhance corporate efficiency, it is also becoming a source of anxiety for millions of employees. A recent example is the US tech giant Oracle, which has laid off approximately 21,000 employees globally during the 2026 fiscal year. The company states that its operational methods are rapidly evolving due to the increasing use of AI, and the workforce size may shrink further in the future.

In its annual report released on Monday, Oracle revealed that its headcount had dropped to approximately 141,000 by May 31, 2026, down from around 162,000 a year earlier—representing a reduction of about 13 percent in its total workforce.

**Workforce Changes Driven by AI**
Oracle explicitly stated in the report that the use of AI technologies across its various operations has contributed to the reduction in headcount, and this impact is likely to persist. According to the company, this shift is not solely due to AI but is also linked to factors such as management and product-related changes, performance evaluations, strategic restructuring, and acquisitions.

Oracle had already signaled in March that it would undertake large-scale job cuts. At the time, the company was facing cash flow pressures due to heavy spending on the expansion of AI data centers.

**Betting Big on AI and Cloud Business**
Under the leadership of Chairman Larry Ellison, Oracle is attempting to transform itself from a traditional database software company into a major player in the AI ​​and cloud computing sectors. The company is building massive AI data centers for clients such as OpenAI.

As part of this strategy, Oracle is competing with companies like Amazon and Microsoft, which already hold strong positions in the cloud market. However, Oracle faces a challenge: it lacks the robust cash-generating capacity of these rivals, forcing it to rely on debt and additional funding to fuel its expansion. Multi-billion dollar investment, rising costs

The company recently stated that its capital expenditure for the current fiscal year could reach approximately $70 billion. To fund this, Oracle plans to raise around $40 billion through a combination of additional debt and equity.

Costs associated with the AI-focused restructuring have also risen significantly. In the 2026 fiscal year, Oracle spent $1.84 billion on employee severance packages and other restructuring expenses; in the previous fiscal year, this figure stood at just $374 million.

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