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Oracle stock falls as the company cuts 21,000 jobs — nearly 13% of its workforce — citing AI adoption, while CapEx surges 162% to $55.7B.Oracle stock falls as the company cuts 21,000 jobs — nearly 13% of its workforce — citing AI adoption, while CapEx surges 162% to $55.7B.

Oracle Eliminates 21,000 Jobs As Tech Giant Replaces 13% of Global Workforce With AI

Author: TIKR

Source: TIKR

2026/06/28 19:37

4 min read

AI$0.02209+1.05%

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Key Stats for Oracle Stock

Price change for Oracle stock in the last month: -23%
$ORCL Share Price as of Jun. 26: $149
52-Week High: $346
$ORCL Stock Price Target: $253

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What Happened?

Oracle (ORCL) stock slipped about 18% in the past five days after the company disclosed on Tuesday that it cut 21,000 jobs over the past year, nearly 13% of its global workforce. The news landed amid a broader tech selloff that hit major names across the sector.

Oracle’s headcount fell from 162,000 to 141,000 full-time employees as of May 2026, according to its annual regulatory filing.
The company was direct about the cause: AI. “The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” Oracle said in the filing.
The restructuring didn’t come cheap. Oracle spent $1.8 billion on severance and exit costs — a sharp jump from the $374 million it spent the year before.
The company acknowledged the cuts can be disruptive, noting risks including “loss of valuable institutional knowledge” and damage to employee morale.

Oracle stock has now dropped more than 10% since the start of the year. Part of that pressure stems from the company’s aggressive AI infrastructure spending.

Capital expenditure jumped 162% to $55.7 billion in the last fiscal year. Free cash flow came in at -$23.7 billion. In January, the company announced plans to raise $50 billion in debt and equity to fund that buildout — a move that rattled investors.

ORCL Stock Revenue, EBIT and Free Cash Flow Estimates in Billion USD (TIKR)

Oracle isn’t alone. Meta laid off 8,000 employees in May. Microsoft offered voluntary buyouts to 7% of U.S. staff. AI-related layoffs across the U.S. topped 50,000 in 2025, with Salesforce and IBM also cutting roles.

Despite the workforce reduction, Oracle’s business is growing fast.

Q4 revenue hit $19.2 billion, up 21% year-over-year.
Cloud infrastructure revenue surged 93%.
The company’s remaining performance obligations — essentially contracted future revenue — reached $638 billion, up 363%.
For fiscal year 2027, Oracle is guiding for 34% revenue growth in constant currency.

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What the Market Is Telling Us About Oracle Stock

Oracle stock is caught between two competing narratives.

The business is genuinely booming — AI demand is filling its data centers, and backlog is exploding.
But the cost of funding that growth is enormous, and cutting 21,000 jobs signals the company is under real pressure to manage expenses.

ORCL Stock Valuation Model (TIKR)

Investors buying Oracle stock today are betting the long-term AI infrastructure payoff outweighs the near-term cash burn. That’s a reasonable bet, but not a painless one.

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Revenue Growth
Operating Margins
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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!

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