Oracle reduced its workforce by approximately 21,000 employees over the past year, representing nearly 13 per cent of its staff, as major technology companies continue to streamline operations amid the growing adoption of artificial intelligence.

In its annual regulatory filing released on Monday, Oracle reported that it employed 141,000 full-time workers as of May 2026, down from 162,000 a year earlier.

Oracle shares fell 3.6 per cent in premarket trading and have declined 15.4 per cent since the start of the year.

The drop came as global technology stocks faced broad selling pressure.

“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 the filing.

Oracle incurred $1.8 billion in restructuring expenses during the year, including severance packages and other exit-related costs, a significant increase from the $374 million recorded in the previous year.

The company acknowledged that workforce reductions can be disruptive to its operations, citing higher restructuring expenses and the potential for reduced productivity as key challenges associated with the changes.

“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,” it said.

Oracle informed employees in March that it would eliminate thousands of jobs as it came under investor pressure over the substantial debt required to finance its artificial intelligence infrastructure expansion.

Earlier in January, the company unveiled plans to raise $50 billion through a combination of debt and equity financing.

At the same time, Oracle reported negative free cash flow of $23.7 billion for the last fiscal year, while capital expenditure surged by 162 per cent to $55.7 billion.