Oracle Corp. has decreased its workforce by 21,000 employees over the last year, a figure that surpasses earlier estimates, encompassing individuals whose positions were rendered obsolete due to the implementation of artificial intelligence. “The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” Oracle stated Monday in an annual financial regulatory filing.
The company reported a reduction in its global workforce, which decreased to 141,000 full-time employees as of the fiscal year ending on May 31, down from 162,000 the previous year, according to Oracle. The reductions resulted in approximately $1.8 billion in restructuring expenses. Oracle faces financial strain due to the costly expansion of AI data centers for clients such as OpenAI. Earlier this year, it commenced the reduction of thousands of jobs as part of initiatives aimed at conserving cash, sources have reported. The precise extent of the reductions was never officially revealed.
As of the end of May, the company employed approximately 49,000 workers in the United States, while around 92,000 were engaged internationally. The company’s headcount is currently marginally reduced compared to its levels prior to the acquisition of electronic health records firm Cerner in 2022. That $28 billion acquisition resulted in the addition of thousands of employees, with a significant concentration near Cerner’s headquarters in the Kansas City area.