Oracle Cuts 21,000 Jobs, Records $1.84 B Severance Costs in AI Overhaul
ORCL•Oracle reduced its global workforce by 13%, cutting about 21,000 positions to 141,000 employees and incurred $1.84 billion in severance and restructuring charges, up from $374 million. The cuts align with AI-driven strategy shifts and streamline operations as cloud revenue rose 39% to $34 billion in fiscal year 2026.
1. Job Cuts and Workforce Reduction
Oracle's global headcount fell by 13%, from 162,000 to 141,000 employees, as approximately 21,000 positions were eliminated during fiscal 2026. The cuts spanned cloud and software (26,000 roles), services (34,000), sales and marketing (25,000), research and development (43,000), hardware (2,000) and general and administrative (11,000).
2. Severance and Restructuring Expenses
The company recorded $1.84 billion in severance and related restructuring charges, a substantial rise from $374 million in the previous year, reflecting accelerated exits and reorganizations tied to the overhaul.
3. AI-Led Strategic Overhaul
Management changes, product portfolio updates, acquisitions and expanded AI adoption across business functions drove the restructuring, aiming to streamline operations and align the workforce with evolving technology demands.
4. Cloud Revenue Growth
Oracle's cloud business achieved 39% revenue growth to $34 billion in fiscal 2026, with quarterly cloud revenues up 47% to $9.9 billion—cloud infrastructure surged 93% while applications rose 10%, underscoring the shift toward cloud services.
