Report reveals Oracle may lay off 30,000 employees
Oracle is reportedly planning to cut 30,000 jobs as the company looks for cash to fund its expensive AI data center expansion.
Oracle may be preparing for one of the most difficult phases in its recent history. A new report reveals that the software giant is planning to cut more than 30,000 jobs as it looks for ways to pay for its massive push into AI data centers. The report, published by CIO and based on research by investment bank TD Cowen, said Oracle is under increasing pressure to arrange funding for its ambitious infrastructure plans. According to the findings, the company could lay off anywhere between 20,000 to 30,000 employees, making it the largest round of job cuts by Oracle in years.
“Both equity and debt investors have raised questions about Oracle’s ability to finance this buildout,” said TD Cowen, quoted in the report.
The root of the problem lies in Oracle’s costly AI commitments. The company has undertaken large data center building projects for major clients, including Sam Altman’s OpenAI. TD Cowen estimates that Oracle’s data center expansion may require capital expenditures of about $156 billion. In recent weeks, several US banks have reportedly pulled away from lending to Oracle for these projects, making it harder for the company to access funding.
With fewer financing options on the table, Oracle is now looking to free up cash. According to TD Cowen, cutting thousands of jobs could help the company generate between $8 billion and $10 billion of free cash flow. This money will likely be redirected to building and running AI-focused data centers.
Oracle has not yet issued any official comment on the report. However, the scale of the potential layoffs suggests the company is being forced to make tough choices to keep its expansion plans alive.
The report also points to problems beyond staffing. Several data center lease deals that Oracle was negotiating with private operators have stalled because funding could not be arranged. Without those leases, Oracle has been unable to secure the additional capacity needed to support its cloud and AI services.
If this happens, the layoffs would be larger than Oracle’s previous job cuts. At the end of 2025, the company laid off about 10,000 employees as part of a $1.6 billion restructuring plan. Current numbers would almost triple that figure.
Oracle is also exploring other ways to ease the financial pressure. One option under consideration is the sale of Cerner, its healthcare software unit, to be acquired in 2022 for $28.3 billion. Also, the company has begun asking customers to take more responsibility in building the infrastructure, a move that effectively reduces Oracle’s own expenses.
Another idea being tested is a “bring your own chip” arrangement, where new cloud customers would be required to supply their own hardware. This will allow Oracle to keep capital costs off its books while expanding its services.
