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title: Oracle is slashing its workforce as it automates with AI
description: Oracle&#x27;s workforce shrank by 13% (approximately 21,000 employees) in its FY2026, dropping from 162,000 to 141,000 workers. The company spent $1.84 billion in...
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# Oracle is slashing its workforce as it automates with AI

**[TechCentral](https://daily.dev/sources/techcentral)** · 2 min read · 9 upvotes · 8 comments

## Summary

Oracle's workforce shrank by 13% (approximately 21,000 employees) in its FY2026, dropping from 162,000 to 141,000 workers. The company spent $1.84 billion in severance and exit costs, a sharp rise from $374 million the prior year. The cuts are attributed to AI-driven automation, strategic restructuring, management changes, and acquisitions. Meanwhile, Oracle is aggressively expanding its cloud infrastructure, signing major data center deals with OpenAI and Meta, and plans to spend around $70 billion in capital expenditure this fiscal year — funded partly by $40 billion in new debt and equity.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://techcentral.co.za/oracle-is-slashing-its-workforce-as-it-automates-with-ai/282962>

## Questions this post answers

### How much did Oracle's workforce shrink in its 2026 fiscal year?

Oracle's total workforce declined 13%, or about 21,000 employees, falling from roughly 162,000 to 141,000 as of May 31, 2026. The reduction was driven by restructuring tied to management and product changes, performance issues, strategic shifts, and acquisitions, with AI adoption cited as a contributing factor. Severance and exit costs rose to $1.84 billion from $374 million the prior fiscal year.

_Track how AI-driven restructuring is reshaping tech hiring and career paths on daily.dev._

### Why is Oracle raising $40 billion in debt and equity?

Oracle plans to raise $40 billion in debt and equity, including a previously announced $20 billion stock issuance, to help fund roughly $70 billion in expected net capital expenditure for its current fiscal year. Unlike rivals such as Amazon and Microsoft, which fund cloud infrastructure from large cash flows, Oracle has relied on burning cash and issuing debt to compete, including data center deals with OpenAI and Meta.

_Follow how cloud providers finance AI infrastructure buildouts on daily.dev._

## Community discussion

Top comments from developers on daily.dev.

**@fabianletsch** · 3 upvotes

> What exactly are more than 100000 people at oracle working on? They are obviously all lawyers... no but actually, what are they working on?

**@jeanclaudegeagea** · 1 upvotes

> It’s frustrating to see 21,000 people lose their jobs just so Oracle can bet everything on AI. Replacing humans with machines to cut costs feels wrong, no matter how big the profit margins get. We need tech that helps people, not ones that puts them out of work

**@elmarchavez** · 1 upvotes

> To this day, I still can't believe they laid off that much in such a short timespan. No wonder people are more concerned now about AI layoffs.

**@starfallcodes** · 0 upvotes

> bable is not popping help

**@hamza\_brackets** · 0 upvotes

> A 13% workforce reduction is significant and highlights how rapidly AI is reshaping enterprise operations. While automation can improve efficiency and help scale cloud infrastructure, it also raises important questions about workforce transition, reskilling, and the future role of employees in AI-driven organizations. It will be interesting to see how Oracle balances aggressive AI investment with long-term talent strategy.

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---

Tags: [#cloud](https://daily.dev/tags/cloud), [#ai-agents](https://daily.dev/tags/ai-agents), [#oracle](https://daily.dev/tags/oracle)

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