Oracle has cut around 21,000 jobs as part of a broad restructuring effort linked in part to the company’s increasing use of artificial intelligence technologies, according to its latest annual regulatory filing.

The technology company said the layoffs, which represent approximately 13% of its global workforce of 162,000 employees as of May 2025, resulted in restructuring costs of about $1.8 billion.

In its filing, Oracle stated: “The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” acknowledging the growing impact of automation and AI-driven systems on employment within the company.

The reductions affected multiple business units. The largest proportional cuts were seen in Oracle’s hardware division, which lost roughly one-third of its staff, or about 1,000 employees.

In absolute terms, the biggest impact was in research and development, where around 7,000 jobs were eliminated, representing 14% of that division’s workforce.

Sales and marketing roles were also significantly affected, with about 6,000 positions cut, or nearly 20% of employees in those departments. Oracle’s cloud and services divisions each saw around 3,000 job losses, while administrative staff were reduced by approximately 1,000 employees.

Geographically, Oracle reduced its workforce both in the United States and internationally. The company cut around 9,000 jobs in the U.S., equal to 15.5% of its domestic workforce, while approximately 12,000 positions were eliminated abroad, representing 11.5% of its international staff.

Oracle’s restructuring comes amid a broader trend across the technology sector, where companies are increasingly linking workforce reductions to the adoption of AI systems and automation tools.

Several major firms have made similar moves. Salesforce reduced its customer service workforce following the integration of AI agents, while Meta has also carried out significant layoffs as it increases investment in artificial intelligence.

Israeli tech firm Fiverr has likewise shifted toward an “AI-first” model, reducing staff as part of its restructuring strategy.

Oracle remains a major player in AI infrastructure, focusing on providing cloud computing services rather than developing frontier AI models itself. The company has committed to investing around $50 billion this year in data centers and related infrastructure to support AI development.

The company is also involved in large-scale initiatives, including a partnership with OpenAI on the “Stargate” project, aimed at expanding global AI computing capacity.

The layoffs highlight the accelerating impact of AI on global labor markets, particularly in the tech sector, where companies are restructuring operations to prioritize automation, efficiency, and large-scale computing infrastructure.

Oracle’s move is among the largest publicly disclosed workforce reductions linked to AI adoption so far, underscoring the rapid transformation underway in the global technology industry. (ILKHA)