Oracle Corporation Cuts Thousands of Jobs to Fund AI Expansion

Oracle Corporation reduced its global workforce by approximately 13% during the fiscal year ending May 31, 2026, cutting roughly 21,000 positions to maintain financial discipline amid a massive expansion into artificial intelligence. The company reported 28.5 billion dollars in capital expenditure for the first quarter and projects spending between 90 billion and 95 billion dollars in fiscal 2027.

In India, the company's headcount fell to an estimated 27,000 from a previous high of nearly 50,000. These reductions occurred in waves starting in April 2026, with an initial cut of 10,000 to 12,000 jobs followed by further reductions in September across Bengaluru and Hyderabad. The most affected roles include legacy database administration, support, product engineering, and back-office cloud services. Oracle Corporation is utilizing AI-based coding tools to increase engineering efficiency, allowing smaller teams to maintain previous output levels while selectively hiring for AI-focused roles.

During a companywide meeting on Tuesday, CFO Hilary Maxson stated the company should not operate on the principle of "doing more with less," arguing instead for the elimination of low-value processes. Co-CEO Mike Sicilia urged employees to evaluate whether their work contributes to better customer outcomes. The All India IT and ITES Employees' Union criticized the layoffs, alleging that restructuring is being used to justify job losses despite strong quarterly financial performance.