As the cloud computing behemoth continues its strategic business restructuring—a move partly driven by the widespread adoption of artificial intelligence across its operations—Oracle saw its total workforce decline by 13% in fiscal 2026, equating to a reduction of roughly 21,000 employees.

According to the company's annual report released on Monday, its total headcount stood at 141,000 as of May 31, 2026, compared to approximately 162,000 in the same period last year.

The filing revealed that Oracle incurred $1.84 billion in expenses for severance and other termination costs related to restructuring activities during the 2026 fiscal year, a figure substantially higher than the $374 million recorded in the prior fiscal year.

The company further stated in the document that this workforce adjustment was influenced by multiple factors, including changes in management and product lines, performance considerations, strategic realignments, and mergers and acquisitions.