Oracle has laid off 21,000 employees in one year – The cost of technology “downsizing” in the AI era
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- Oracle has cut approximately 21,000 jobs over the past year, representing almost 13% of its total workforce (dropping from 162,000 to 141,000 employees). The company's share price has fallen by more than 10% year-to-date, with an additional decline of about 1% on Tuesday.
- The company stated that the direct adoption of AI technology has led to and may continue to reduce its workforce. To address this, it has paid $1.8 billion in restructuring expenses (including severance and departure-related costs), a significant jump from $374 million last year. Oracle responded that, as its cloud and AI businesses grow, it will continuously adjust its development teams to align with talent requirements.
- Previously, Oracle raised substantial debt to invest in AI infrastructure and announced a $50 billion fundraising in January. However, its free cash flow for the previous fiscal year was negative $23.7 billion, and capital expenditure surged by 162% to $55.7 billion. The layoffs also reflect an industry trend: tech giants like Meta and Microsoft are expected to spend a total of $700 billion on capital expenditure this year. Meta cut 8,000 jobs, while Microsoft offered buyout options. By 2025, AI will have caused over 50,000 job losses across the United States.
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