SAN FRANCISCO (FN) — Oracle is one of the world’s largest software and cloud computing companies. Founded in 1977 by Larry Ellison and partners, it specializes in database software, enterprise applications, and cloud infrastructure. Oracle provides services to governments, businesses, and organizations globally, helping them manage data, run applications, and build digital systems.
Oracle has eliminated 21,000 jobs in the past year, citing restructuring and the growing role of artificial intelligence in replacing human workers.
The software giant reported a workforce of 141,000 at the end of April, down from 162,000 a year earlier, according to its latest annual filing. The cuts represent nearly 13% of Oracle’s staff.
“The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” Oracle said in its report.
Thousands of employees were dismissed abruptly in April, with some locked out of company systems immediately, according to internal communications seen by British media. Severance costs have already reached S1.8 billion and are expected to rise to S2.1 billion, a sharp increase from S374 million the previous year.
Oracle’s restructuring comes as major technology companies shift resources toward artificial intelligence and cloud infrastructure. Amazon and Meta have also announced large layoffs this year, part of what analysts describe as a “once-in-a-generation revolution” in Silicon Valley as AI systems take on coding, office work and customer support.
Shares in Oracle fell 5% overnight amid a broader sell-off in tech stocks that also hit Google and SpaceX. The company’s share price has dropped nearly a third in the past year, pressured by heavy debt linked to expansion plans.
Oracle has pledged to invest S70 billion in AI data centers over the next year and has a S300 billion deal to provide data services to OpenAI, the maker of ChatGPT. The company said it will continue to “balance resources” as its cloud and AI businesses grow.
Larry Ellison, Oracle’s billionaire co-founder and chief technology officer, remains the company’s largest shareholder. At 81, he has also expanded his influence in Hollywood, with his son David Ellison leading Paramount after a debt-fueled S111 billion deal to acquire Warner Bros Discovery.
The layoffs highlight the global tension between technological innovation and employment. While AI promises efficiency and new business opportunities, governments and labor groups warn of rising job insecurity and the need for retraining programs to protect workers displaced by automation.
International observers say Oracle’s cuts reflect a broader trend in the global tech industry, where companies are racing to build AI infrastructure while reducing traditional staff costs. Analysts note that similar moves in Europe and Asia could intensify debates over how governments regulate AI adoption and protect workers.
Labor unions in the United States have already called for stronger safeguards, arguing that mass layoffs tied to automation risk deepening inequality. Economists warn that while AI investment may create new roles in data science and engineering, the transition could leave millions of office and support workers vulnerable.
Oracle’s spokesman said the company will “continually balance our resources and restructure our development group to help ensure we have the right people delivering the best cloud and AI products to our customers around the world.”
