Oracle shares fall after report of 21,000 job cuts

Oracle reduced its workforce by about 21,000 employees in fiscal 2026, a 13% decline that left total head count at 141,000 as of May 31, 2026. The company disclosed the cuts and related costs in its annual report, and shares fell about 5% to $175.07 on the news.

The annual report showed Oracle recorded $1.84 billion in severance payments and other exit costs tied to restructuring activities in fiscal 2026, up from $374 million the prior year. Management listed product changes, performance issues, strategic shifts, acquisitions and adoption of artificial intelligence across operations as drivers of the reductions.

The filing and earlier internal notices identified concentrated impacts in some regions. Oracle’s workforce in India was estimated at about 30,000 before the reductions, with more than 12,000 roles affected. In the United States, a layoff notice filed in Washington state listed 491 remote and Seattle-area employees as terminated effective June 1, 2026.

Oracle described the reductions as part of an effort to reallocate personnel and capital while expanding cloud computing and AI infrastructure. The company has signed large data-center deals with OpenAI and Meta as it builds out its cloud capacity.

The company expects net capital expenditure of roughly $70 billion in its current fiscal year. To help fund that spending, Oracle plans to raise about $40 billion in debt and equity, including a previously announced $20 billion stock offering.

Shares had fallen about 10% year-to-date before Monday’s decline. Investors have focused on the company’s combination of significant infrastructure spending and efforts to simplify parts of the business.

Industry-wide reductions have been common this year; 196 technology firms have announced layoffs totaling more than 119,800 positions. Oracle’s filings describe the workforce cuts as intended to shift resources to areas the company views as important for future growth and to simplify parts of the business.

The annual report lists the specific drivers management cited and quantifies the financial impact of the restructuring on Oracle’s fiscal 2026 results.