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[BUSINESS] · United States · 61 sources

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Oracle cuts 21,000 jobs as AI drives restructuring

Oracle announced in its fiscal 2026 annual report that it reduced its global workforce by about 21,000 employees, a decline of roughly 13% from 162,000 to 141,000 full‑time staff. The company said the cuts were driven by the "adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce," and warned that further AI‑related layoffs could follow.

The restructuring cost Oracle about $1.8 billion in severance and other reorganization expenses. At the same time, the firm is reallocating capital toward AI infrastructure, targeting up to $50 billion of investment in data‑center capacity for high‑performance AI workloads. Capital expenditures rose to $55.7 billion in FY2026, pushing free cash flow into a negative $23.7 billion, while cloud revenue grew 93% year‑over‑year to $5.8 billion.

Oracle’s backlog of signed contracts surged to $638 billion, underscoring a shift from a labor‑intensive software model to a capital‑heavy AI‑focused cloud business. Analysts note that the layoffs are part of a broader industry trend as major tech firms redirect spending from payroll to AI‑related hardware and services.

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Liderança humanizada [economia.ig.com.br]
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