Is AI driving job losses? Oracle cuts 21,000 roles as GM expands robots

Artificial intelligence is rapidly reshaping the global labour market, with major corporations restructuring operations as automation and machine learning take over tasks once performed by humans.

The shift is accelerating job reductions across both technology and manufacturing sectors, signalling a broader transformation in how businesses are organised and how work is carried out.

Oracle Corp has reduced its global workforce by around 21,000 employees over the past 12 months, according to its latest regulatory filing, underscoring the growing impact of artificial intelligence across corporate operations

According to a Reuters report, the company said the adoption and deployment of AI technologies have contributed to workforce reductions and could continue to do so in the future as automation becomes more deeply embedded across its systems.

Oracle’s total headcount fell from 162,000 to 141,000 full-time employees as of May 31. The reductions were linked to approximately $1.8 billion in restructuring costs, as the company balances cost control with heavy investment in AI-driven data centre expansion for clients including OpenAI.

The cuts also come amid wider restructuring following Oracle’s acquisition of Cerner in 2022, with the company continuing to streamline operations across its global workforce.

A similar shift is unfolding in the automotive sector, where General Motors (GM) has introduced around 50 collaborative robots, or “cobots”, at its Factory Zero plant in Michigan as part of its push toward greater automation.

The rollout has reportedly coincided with more than 1,000 job losses at the facility, alongside broader workforce restructuring that has also affected IT and engineering teams as GM pivots toward digital and AI-enabled operations.

The company says the cobots are designed to work alongside employees to improve safety, ergonomics and productivity rather than replace human labour. However, labour unions, including the United Auto Workers (UAW), have raised concerns over job displacement and have filed grievances over the increased use of automation.

Union representatives argue that the expansion of robotics is reducing opportunities for workers, while GM maintains the shift is necessary to stay competitive amid evolving demand for electric vehicles and manufacturing efficiency.

Across industries, analysts describe the trend as a “skills swap”, where companies are reducing traditional roles while increasing investment in AI, robotics and advanced digital capabilities.

The developments at Oracle and GM highlight how artificial intelligence and automation are no longer future concepts but active forces reshaping employment structures today.

As companies continue to manage cost pressures and technological transformation, AI-driven workforce changes are expected to remain a defining feature of the global economy.

With inputs from Agencies