AI Replaces Humans: 21,000 Workers Laid Off

Jakarta, CNBC Indonesia - The fear that artificial intelligence (AI) technology will take over human jobs is no longer a prediction. The evidence is increasingly visible everywhere. Technology giants continue to carry out mass layoffs in 2026. Some have stated the reason for the layoffs is the adoption of AI, which is more efficient and increases productivity. Most recently, US software giant Oracle announced its total workforce has decreased by 13%, equivalent to 21,000 employees, in the 2026 fiscal year. The reduction in employees aligns with Oracle’s commitment to continuing business restructuring, partly driven by the adoption of AI across all operational lines of the company. As of 31 May 2026, Oracle had a total of 141,000 employees. That figure is a significant drop from the 162,000 employees in the same period the previous year, according to the company’s annual report, as cited by Reuters on Tuesday (23/6/2026). Oracle paid US$1.84 billion (Rp32 trillion) for severance and other costs related to the layoffs and restructuring in fiscal year 2026. This amount is several times higher than the US$374 million (Rp6.6 trillion) spent the previous year. In its annual report, Oracle also stated the workforce adjustments were made in response to various factors, including product and management changes, performance issues, strategic moves, and acquisitions. The decline in employee numbers follows several reports earlier this year about Oracle cutting thousands of jobs. The company did not respond to Reuters’ request for comment. Concerns are rapidly mounting over job losses due to AI. A total of 196 technology companies have laid off more than 119,800 employees so far this year, according to Layoffs.fyi, a website that tracks layoffs across the sector. As a smaller player in the cloud computing industry for a long time, Oracle has in recent months signed massive data centre deals with OpenAI and Meta to compete more closely with rivals such as Amazon and Microsoft. However, unlike tech giants that fund their large expenditures through substantial cash flows, Oracle has been forced to burn through cash and issue debt. The company’s shares have fallen about 10% this year. Oracle said earlier this month that it expects net capital expenditure of about US$70 billion (Rp1,249 trillion) in the current fiscal year. To fund this, it will raise an additional US$40 billion (Rp714 trillion) in debt and equity, including a previously announced US$20 billion (Rp357 trillion) share issuance.