Oracle Corp., a global technology company, revealed in its annual financial filing that the adoption of artificial intelligence (AI) technologies led to a reduction in its workforce by about 21,000 employees over the past year. The company’s global workforce now stands at 141,000 full-time employees, down from 162,000 a year earlier. This workforce reduction incurred restructuring costs of approximately $1.8 billion.
The company stated that the implementation of AI technologies in its operations has and may further result in job cuts. Despite these layoffs, Oracle is heavily investing in AI infrastructure and data centers to meet the rising demand, including from customers like OpenAI. Oracle, with about 49,000 employees in the United States and around 92,000 internationally, has been enhancing its AI capabilities amidst fierce competition among leading cloud service providers.
Furthermore, Oracle’s headcount has dipped below pre-2022 acquisition levels of electronic health records firm Cerner. Recent reports highlighted layoffs across Oracle’s operations globally, with affected employees notified via early-morning emails. This filing underscores how AI adoption is reshaping workforce needs in major tech companies, reflecting a broader trend in the industry.
