Oracle disclosed in a Form 10-K filing that it reduced its workforce by 21,000 employees over the past year as it automates white-collar jobs and frees up cash to splurge on AI infrastructure buildouts.
"Our periodic workforce restructurings and reorganizations can be disruptive," Oracle said in the annual financial regulatory publsihed on Monday, adding, "We have an existing restructuring plan in place under which we have made, and will continue to make, adjustments to our workforce in response to management changes, product changes, performance issues, changes in strategies, acquisitions and other internal and external considerations."
It noted, "We may initiate new restructuring plans in the future. In addition, the adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce."
The filing detailed how the tech giant ended its fiscal year with 141,000 full-time employees, down from 162,000 a year earlier. Costs associated with the workforce reduction totaled around $1.8 billion.
The labor cuts come as Oracle faces pressure amid its $55.7 billion capital expenditure spending spree in fiscal 2026, which is almost entirely tied to its AI cloud and data center buildout. That was up from $21.2 billion in fiscal 2025, meaning capex more than doubled year over year.
For fiscal 2027, Oracle is guiding even higher: about $70 billion in capex, plus another $20 billion to $25 billion of spending that it expects customers to repay. That implies up to $95 billion for AI and data-center capex in the current fiscal year.
Bloomberg was the first to report in March that Oracle planned to cut its workforce as it aggressively spent on AI data center buildouts.
Wall Street analysts forecast that the cloud unit's data center spending will drive Oracle's cash flow negative through the end of the decade, with a payoff not expected until 2030. In January, Oracle announced plans to raise $50 billion in debt and equity.
ORCL 5 Year CDS exploded to record highs ...
ORCL 5 Year CDS vs. Oracle equity
The labor restructuring should come as no surprise, as we cited Barclays earlier this year, which proposed that the "next step" for Oracle to drive free cash flow would be to lay off between 20,000 and 30,000 employees.
Read:
Oracle has joined the growing party of tech giants, including Meta, Alphabet, Microsoft, Amazon, Xai, and others, that have outlined AI capex plans this year, collectively totaling $800 billion.
Last month, Meta axed some 8,000 jobs as the great "white-collar purge" continues across corporate America. AI has led to about 50,000 layoffs so far this year in the US, with IBM and Salesforce announcing large cuts.
Related:
Oracle appears to be using labor restructuring to start digging itself out of the considerable hole it has dug, with more layoffs likely this year.
Israel has set several “conditions” for the withdrawal of its occupation forces from Lebanon, Hebrew newspaper Israel Hayom reported this week – after Tel Aviv was forced to stop bombing the country due to the US–Iran agreement.
"Israel has three minimum conditions for withdrawing its forces from southern Lebanon: the withdrawal of all Hezbollah terrorists north of the Litani River; the dismantling of Hezbollah … infrastructure south of the Litani; and full Israeli freedom of action to remove threats," the report said.
via ReutersAt the same time, Israel will continue to insist on maintaining a "defensive strip" in the country, senior officials told the outlet.
The Israel Hayom report claims that occupation forces have surrounded a fortified underground complex at Ali al-Taher Hill, located east of Nabatieh and north of the Litani River.
Ali al-Taher Hill is a highly strategic location overlooking the city of Nabatieh. Israel has been attempting to capture the area, but has faced fierce resistance and has been engaged in heavy battles over the area for several weeks.
Israel Hayom and other Hebrew reports say the area holds an important command center for Hezbollah operations.
The report claimed resistance fighters are besieged there and that “Israel's security establishment do not know how long the trapped terrorists will be able to hold out underground, but what is clear is that the military is preventing them from coming out.”
The Israeli army “does not intend to withdraw from the site until those terrorists are eliminated or surrender, followed by the destruction of the underground infrastructure.”
Unofficial reports and observers on social media say that the complex in question may be Hezbollah’s famous Imad-4 facility, which serves as a key command and weapons storage site.
Israel Hayom claims troops “are now positioned at all the entrances to the concrete, fortified command post,” adding that “dozens of terrorists underground are under growing distress, and it is no coincidence that they are activating Iran, which is demanding that the US force Israel into a ceasefire in Washington.”
The report comes after a brutal Israeli escalation in Lebanon over the weekend, which killed at least 100 people. Major clashes between Israeli troops and Hezbollah resistance fighters also raged throughout the weekend before a cessation of hostilities was imposed on Tel Aviv by Tehran’s pressure on Washington.
Five Israeli occupation soldiers, including a battalion chief, were killed by the Shia resistance fighters between Thursday and Saturday – including four who burned to death in their tank.
Hezbollah has denied Israeli claims that its fighters are besieged, saying such reports were designed to boost the morale of Israeli forces after their failure to advance in the area.
Israeli officials continue to publicly reject withdrawal and are vowing that Tel Aviv’s forces will remain in the so-called ‘security zone’ in south Lebanon. “We don’t have territorial ambitions in Lebanon, but we will not withdraw from the security zone and expose our citizens to Hezbollah’s attacks and possible invasion,” says Israeli Foreign Minister Gideon Saar.
His comments coincided with a CNN report saying Israel was considering “symbolic” withdrawals from “minor areas” in south Lebanon.
Israeli Finance Minister Bezalel Smotrich had said a day earlier that Tel Aviv will maintain an occupation in Lebanon for years. "We are there until Hezbollah disarms, and I think also beyond that, because we need defendable borders,” he said in an interview.
🇮🇱🇱🇧 New Evidence Regarding an Underground Hezbollah Facility in the Ali a-Taher Area
While it had previously been widely believed that the sprawling underground complex in the Ali a-Taher ridge area was a strategic Hezbollah facility, Lebanese sources are now offering a… pic.twitter.com/q2ehjdH96f
Asked if the military would stay “for years” in Lebanon, Smotrich said, “Yes, and I say this as someone who is currently holding negotiations over the management of the defense budget for the next decade.”
He stressed that “until Hezbollah disarms, we aren’t moving a millimeter,” adding that Israel’s prime minister and war minister support this stance.
Tyler Durden Tue, 06/23/2026 - 08:05