Oracle cites AI as a factor driving changes to its headcount
Oracle's workforce went down by almost 13% in the past year as the organisation underwent a restructuring plan that cited AI adoption as one of its factors.
The American multinational company revealed in a regulatory filing this week that it has 141,000 full-time employees as of May 2025, including approximately 49,000 employed in the United States.
This current headcount is down 21,000 from the 162,000 full-time employees that it recorded at the same time the previous year, as per its 2025 annual report.
Oracle's headcount went down as the company implemented a restructuring plan that cost the company $1.8 billion in restructuring expenses, including severance payments and other exit costs.
The company did not reveal how many employees were impacted by the restructuring, but it attributed the change to "certain strategic measures," including the "adoption and integration of AI technologies across certain functions and other operational activities."
"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 said in the regulatory filing.
It adds to the growing list of organisations in the US that are laying off employees due to AI adoption, which is now the top reason behind job cuts in recent months.
It is also likely that future cuts at Oracle may take place due to further adoption of the technology.
"We may initiate new restructuring plans in the future," the company said. "In addition, the adoption and deployment of AI technologies have resulted, and may continue to result, in reductions to our workforce."
Oracle's 'disruptive' restructuring efforts
The company acknowledged that its restructuring efforts "can be disruptive" to its workforce and productivity.
"These types of restructurings have resulted, and may in the future result, in increased restructuring costs and reduced productivity," it said.
"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 also recognised that it may lose key employees and may be unable to hire enough qualified candidates, particularly in the AI field where competition is "intense and ongoing."
"For example, in recent years, recruiting, hiring and retaining employees with expertise in the AI computing industry has become increasingly difficult as the demand for AI computing infrastructure has increased as a result of the increase in AI and machine learning development, deployment and demand," it said.
"In addition, implementation of AI tools may require new skills and capabilities, and we may not be successful in reskilling current employees."
Rising compensation costs were also cited in the regulatory filing as a business risk for the organisation.
"We may not be successful in recruiting new personnel and in retaining and motivating existing personnel," it said.
"With rare exceptions, we do not have long-term employment agreements with our employees. Members of our senior management team have left Oracle over the years for a variety of reasons, and any future departures may be disruptive to our operations."
The average tenure at Oracle is approximately eight years, it revealed, with 31% of its employees employed at the company for 10 or more years.
