Oracle ended fiscal year 2026 with roughly 141,000 employees, down from 162,000 — a reduction of about 21,000 people or 13%, one of the deepest cuts in the company's history. The layoffs were framed as a reallocation of resources from legacy operations into AI and cloud infrastructure. Oracle's capital expenditure for the year reached approximately $50bn, with a contracted revenue backlog surpassing half a trillion dollars driven by large AI deals. Analysts estimate the workforce reductions free up $8–10bn annually in cash flow, which is being funneled into data-center construction. The cuts hit some teams by 30% or more, and a $16.3bn data-center financing deal required bond manager PIMCO to anchor $10bn after US banks stepped back. Oracle joins a broader tech industry trend of converting payroll into AI capital expenditure.
