Cloud giant Oracle has revealed a startling figure in its latest annual report: in the 2026 fiscal year, the company's total number of employees dropped sharply from about 162,000 to 141,000, a decrease of 13%, involving the layoff of approximately 21,000 people. This unprecedented organizational restructuring reflects the significant cost pressures and painful strategic shifts faced by global tech companies in the era of artificial intelligence.
12.5 billion yuan in restructuring costs, the cost of layoffs far exceeds previous years
To make these 21,000 people leave, Oracle paid a real price. According to the financial report, the company spent 1.84 billion US dollars (approximately 12.5 billion Chinese yuan) on severance packages and related costs in the 2026 fiscal year, a figure that is nearly five times higher than the 374 million US dollars spent in the previous fiscal year. Oracle admitted in its filing that the layoffs were driven by multiple factors, including management adjustments, underperformance, strategic shifts, and integration from corporate acquisitions.
Several media outlets had previously reported that Oracle would carry out large-scale layoffs, and this annual report now officially confirms market concerns. In the current era where AI technology is reshaping the industry landscape, even long-established tech giants are forced to cut jobs as a cost for AI transformation to free up funds and resources.
The wave of layoffs in the tech industry is sweeping across the globe, with nearly 120,000 people laid off this year
Oracle's layoffs are not an isolated case. Data from the industry tracking website Layoffs.fyi shows that since 2026, 196 tech companies have announced layoffs, resulting in the dismissal of more than 119,800 employees. The efficiency gains and cost replacement effects brought by AI technology are triggering a global career earthquake.
Oracle has long been a "second-tier player" in the cloud computing sector. In recent months, it has signed major data center cooperation agreements with OpenAI and Meta, attempting to strengthen its competitiveness and catch up with industry leaders such as Amazon and Microsoft. However, unlike tech giants that rely on ample cash flow to support large investments, Oracle can only use its own cash and issue debt to raise funds. Its stock price has fallen by about 10% this year.
