Tech giant Oracle slashes 21,000 jobs while betting big on AI

Tech giant Oracle has cut approximately 21,000 jobs worldwide, representing about 13 percent of its workforce, during fiscal year 2026 as the company accelerates its shift toward artificial intelligence (AI), according to media reports.

IBNS • 23 Jun 2026, 08:00 am

The software major reported around 141,000 full-time employees as of May 31, 2026, down from approximately 162,000 a year earlier.

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According to Oracle's latest annual report, the adoption of AI technologies across its operations has contributed to workforce reductions and could lead to further job cuts in the future.

"The deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce," the company said in the report, as quoted by the BBC.

Oracle joins a growing list of technology companies that have restructured operations amid heavy investment in AI. Companies such as Amazon and Meta have also announced multiple rounds of layoffs in recent months as they ramp up AI spending.

Despite the workforce reductions, Oracle highlighted strong growth in its AI-focused businesses. In a report released on June 10, the company said its Multicloud AI Database business grew 404 percent in the fourth quarter, making it the fastest-growing segment in Oracle's history.

The company also announced plans to launch a new AI-powered version of the Cerner patient care management platform as part of its Oracle Health application suite.

"We expect this new AI patient care management system to push the growth rate of the overall Oracle Health business to double digits in fiscal year 2027. And this is just the beginning of the expansion of the Oracle Health business," Oracle said.

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The company said it believes AI will fundamentally transform healthcare by improving patient outcomes while lowering costs.

"Oracle Health AI systems will allow doctors to spend less time with computers and more time with patients," the company said.

Oracle added that AI-powered molecular design models could help researchers accelerate the development of life-saving medicines, while its new AI clinical trial system is intended to help regulators review and approve trial results more efficiently.

"AI will make healthcare better, more accessible, and less expensive," the company said.