Hyderabad, June 23: Oracle cut approximately 21,000 jobs worldwide over the past 12 months as the tech giant accelerated the use of artificial intelligence across its operations, according to the company’s latest annual financial report. The workforce reduction marks one of the largest AI-driven job cuts in the global technology sector.
Oracle’s total employee count fell from 1,62,000 in May 2024 to 1,41,000 by May 2025. The company disclosed this decline in its annual report, stating that expanded use of AI technology in internal operations directly drove the reduction. It further indicated that similar workforce changes may continue in the coming years.
The restructuring came at a significant financial cost. Oracle reported additional expenses of approximately $1.8 billion, equivalent to over Rs 17,000 crore, related to these workforce reorganisation measures. Industry observers note that the company appears to be offsetting rising infrastructure costs by reducing its employee expenditure.
Oracle Invests in AI Data Centres Even as Global Headcount Shrinks
Meanwhile, Oracle is investing heavily in large-scale AI data centre construction for clients including OpenAI. Industry sources indicate that the company is trimming workforce costs to manage the financial pressure generated by these major capital investments. The strategy reflects a broader industry trend of substituting human labour with AI-powered systems.
Currently, approximately 49,000 Oracle employees work in the United States, while around 92,000 are based in other countries. The current headcount is notably lower than Oracle’s pre-acquisition staffing levels, despite the company having added thousands of employees through its $28 billion acquisition of Cerner in 2022.
Moreover, the Oracle layoffs are part of a wider global pattern. Several major corporations, including Google, Microsoft, and Meta, have reduced workforces citing AI-driven efficiency gains in recent months. Analysts warn that AI adoption in enterprise operations is likely to accelerate job displacement across sectors beyond technology.
Additionally, India’s IT sector is closely watching these developments. Indian technology professionals employed at multinational firms face increasing exposure to automation-led restructuring, raising concerns among industry bodies and policymakers about employment stability in the sector.
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