Oracle eliminated about 21,000 jobs over the past year, roughly 13% of its workforce, and its fiscal 2026 10-K, filed with the SEC on June 23, points to artificial intelligence as one of the reasons. Headcount fell from around 162,000 to roughly 141,000, while the company pours tens of billions into AI data centers. Oracle stated that the deployment of AI across its operations “has resulted, and may continue to result, in reductions to our workforce” and warned it “may initiate new restructuring plans in the future.” Oracle spent $1.84 billion on severance and other restructuring costs in fiscal 2026, nearly five times the $374 million it spent the year before. Capital expenditure jumped 162% to $55.7 billion, almost all tied to building out AI cloud and data center capacity, producing negative free cash flow of $23.7 billion. Oracle signed a roughly five-year, $300 billion deal to supply data center capacity to OpenAI under Project Stargate, raised $30 billion in debt in February 2026, and is preparing to raise up to $50 billion more in new capital, including a planned $20 billion stock issuance. For fiscal 2027, Oracle is guiding to roughly $70 billion in capital expenditure. Oracle’s backlog ballooned to $638 billion, up from $138 billion a year earlier, and cloud infrastructure revenue was up 93% in the fourth quarter.