Tech Layoffs: Tech giant Oracle has fired 21,000 of its employees in order to adopt AI. Know that IT companies are wasting billions of dollars on AI by replacing humans.
Oracle Layoffs: A very shocking news has emerged for the youth working in the IT sector or dreaming of a better future by learning coding. The world’s leading software and cloud computing company Oracle has fired 21,000 of its employees globally in one stroke. The reason given for this layoff in the latest annual report of the company is enough to give sleepless nights to every software engineer. Oracle has clearly said that it is reshaping its entire business around Artificial Intelligence (AI), due to which the need for human workforce has reduced.
13% workforce lost, revealed in Oracle report
According to official data released by Oracle, the company has laid off about 13% of its total workforce in the last one year. As of May 31, 2025, Oracle had about 1,62,000 full-time employees worldwide, but by May 31, 2026, this number has come down to just 1,41,000. That means 21,000 people directly became unemployed. Oracle has clearly written in its report, ‘Due to the deployment of AI technology in our operations, there has been a reduction in the number of employees and this layoff may continue in the coming times.’
The company paid compensation worth crores
The company also revealed that due to this massive layoff, it had to pay $1.8 billion (about ₹15,000 crore) to its employees in the form of severance payments (amount given at the time of termination) and restructuring costs in the last one year, which is many times more than $374 million last year.
This fear is haunting Oracle after layoffs
After this layoff, Oracle has also issued a big warning in its annual report. The company believes that such a major restructuring could be very ‘disruptive’. The company fears that by suddenly firing so many experienced people, there may be a severe shortage of skilled workers for certain roles. If this happens, the company’s productivity will fall and this will directly impact Oracle’s earnings. This means that in the matter of AI, the company is afraid of hitting its own foot.
Not only Oracle, ‘AI’ dominates the entire tech industry
If you think that this crisis has affected only Oracle employees, then you are wrong. According to data tracking firms, more than 1 lakh tech workers have lost their jobs in the last one year. Big companies are spending money like water to build data centers and AI infrastructure and the entire expense is being covered by laying off employees. Meta, Google and Amazon: These companies together are going to invest about $650 billion (about ₹54 lakh crore) in AI technology this year.
Amazon layoff
Amazon, a company with more than 15 lakh employees worldwide, has decided to invest $200 billion in AI and has also shown the way out to 30,000 employees in several rounds. According to a top executive of Amazon, ‘AI is giving companies the power to innovate so fast that now we need less staff (Lean Organization).’