DATABASES

Annual report reveals workforce fell from 162,000 to 141,000 in a year as company pours billions into datacenter expansion

Oracle's workforce shrank by 21,000 over the last year, according to the company's annual report.

In June 2025 [PDF], Big Red reported that it employed "approximately 162,000" employees. By June 2026 [PDF], that figure had fallen to 141,000. US headcount fell by 9,000, while the international workforce declined by 12,000.

"Our periodic workforce restructurings and reorganizations can be disruptive," Oracle stated. "Deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce."

"We may initiate new restructuring plans in the future," it added, ominously.

Reports of layoffs at Oracle have circulated in recent months as the company seeks to finance its AI datacenter build-out. Estimates have ranged from 20,000 to 30,000, while the annual report shows that its workforce shrank by approximately 21,000 over the last year.

Oracle spelled out the effect on the company and remaining staff, saying: "These types of restructurings have resulted, and may in the future result, in increased restructuring costs and reduced productivity. These types of restructurings may also lead to shortages of sufficiently skilled employees in certain roles, loss of valuable institutional knowledge and damage to employee morale and retention."

The company is legally obliged to highlight the risks in these reports, but it's a point worth making.

"As our cloud and AI businesses grow, we 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," the company said in response to The Register's request for comment.

Big Red is hardly alone in laying off staff as companies roll out AI technologies, spend billions on infrastructure for the tech, and seek to improve the bottom line by cutting payroll. Microsoft has laid off thousands of workers in the last year, something CEO Satya Nadella said was "weighing heavily on me." Nonetheless, in April, the company offered a voluntary departure program to some US employees.

Microsoft has not confirmed how many staffers have taken the option to depart, but one commented: "Seeing a lot of 'I'm accepting the retirement' posts this week," to which another responded: "Folks leaving behind some big shoes to fill."

All of which highlights one cost of layoffs for companies. For affected staff, the experience can be traumatic, even when departure is voluntary, but the loss of institutional knowledge can be difficult to quantify. ®