Oracle disclosed in a Form 10-K filing that it reduced its workforce by 21,000 employees over the past year as it automates white-collar jobs and frees up cash to splurge on AI infrastructure buildouts."Our periodic workforce restructurings and reorganizations can be disruptive," Oracle said in the annual financial regulatory publsihed on Monday, adding, "We have an existing restructuring plan in place under which we have made, and will continue to make, adjustments to our workforce in response to management changes, product changes, performance issues, changes in strategies, acquisitions and other internal and external considerations."It noted, "We may initiate new restructuring plans in the future. In addition, the adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce."The filing detailed how the tech giant ended its fiscal year with 141,000 full-time employees, down from 162,000 a year earlier. Costs associated with the workforce reduction totaled around $1.8 billion.The labor cuts come as Oracle faces pressure amid its $55.7 billion capital expenditure spending spree in fiscal 2026, which is almost entirely tied to its AI cloud and data center buildout. That was up from $21.2 billion in fiscal 2025, meaning capex more than doubled year over year.For fiscal 2027, Oracle is guiding even higher: about $70 billion in capex, plus another $20 billion to $25 billion of spending that it expects customers to repay. That implies up to $95 billion for AI and data-center capex in the current fiscal year.Bloomberg was the first to report in March that Oracle planned to cut its workforce as it aggressively spent on AI data center buildouts.Wall Street analysts forecast that the cloud unit's data center spending will drive Oracle's cash flow negative through the end of the decade, with a payoff not expected until 2030. In January, Oracle announced plans to raise $50 billion in debt and equity.ORCL 5 Year CDS exploded to record highs ...ORCL 5 Year CDS vs. Oracle equity The labor restructuring should come as no surprise, as we cited Barclays earlier this year, which proposed that the "next step" for Oracle to drive free cash flow would be to lay off between 20,000 and 30,000 employees.Read:A Panicking Oracle Plans To Raise Up To $50 Billion, As Its Stock And Bonds CraterOracle Firing Tens Of Thousands As CDS Explodes To Financial Crisis RecordOracle Prepares To Axe Thousands Of Jobs In New Layoff RoundOracle has joined the growing party of tech giants, including Meta, Alphabet, Microsoft, Amazon, Xai, and others, that have outlined AI capex plans this year, collectively totaling $800 billion.Last month, Meta axed some 8,000 jobs as the great "white-collar purge" continues across corporate America. AI has led to about 50,000 layoffs so far this year in the US, with IBM and Salesforce announcing large cuts.Related:20 College Majors Most Exposed To AI Job DisruptionOracle appears to be using labor restructuring to start digging itself out of the considerable hole it has dug, with more layoffs likely this year.