Oracle reduced its workforce by approximately 21,000 people during its last fiscal year, a period in which it invested heavily in the implementation and adoption of artificial intelligence (AI), warning that this process could continue. “The adoption and implementation of AI technologies across our business have resulted, and may continue to result, in reductions to our workforce,” the U.S. tech giant stated in its annual report.
This represents one of the most explicit references made so far by a major technology company regarding the direct impact of this technology on employment.
At the end of its last fiscal year, the company employed 141,000 full-time workers, which represents a 13% decrease compared to the beginning of the period. Within the risk factors section of the annual report, Oracle notes that its periodic restructurings and workforce reorganizations can be disruptive.
The company stated it has a plan in place through which it has made, and will continue to make, personnel adjustments in response to changes in management and products, performance issues, strategic shifts, acquisitions, and other internal and external considerations.
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In this context, the corporation underscores that the adoption and implementation of AI technologies within its operations have resulted, and may continue to result, in workforce reductions. At the same time, it highlighted that it has invested significant resources into infrastructure and hiring specialists to develop AI-based products, forecasting that it will further reinforce this effort as part of its growth strategy.
The company also acknowledges that competition for hiring professionals with AI expertise has intensified significantly across the tech industry.
The firm admits that implementing these tools requires entirely new skill sets, meaning it might not be able to successfully retrain all employees affected by this technological transformation.
Major tech companies are currently accelerating the automation of internal processes through generative AI and autonomous agents. Simultaneously, these corporations are investing billions of dollars into the development of data centers and computing infrastructure to support this new technological wave.
