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Tech giant cuts 21,000 roles.

Oracle says the growing use of AI has driven this restructuring. It warns that further job losses are possible as the firm shifts towards more capital-intensive methods of working.

Headcount fell from roughly 162,000 to about 141,000 full-time staff, a reduction of around 13%.

The cut backs have proved costly. Redundancy pay and other restructuring expenses were around $1.8bn this year.

This disruptive change has seen Oracle lose experienced staff in some areas. This could create skills shortages, reducing productivity.

At the same time, Oracle is investing heavily in the infrastructure needed to support AI, including data centres built for clients such as OpenAI and Meta.

Amazon and Meta have also cut thousands of roles in recent months while pouring money into AI development. More than 100,000 tech workers have lost their jobs across the sector over the past year.

AI allows businesses to innovate far more quickly than before.