SAN FRANCISCO — Tech giant Oracle is reportedly preparing to cut up to 30,000 jobs as it faces mounting difficulties in financing its ambitious AI data center expansion, according to recent reports.
A report by CIO, citing a research note from investment bank TD Cowen, indicates that Oracle’s layoffs could range between 20,000 and 30,000 employees. The company is also considering divesting some of its business units to manage financial pressures, especially as several US banks withdraw from funding Oracle’s data center projects.
Funding Troubles Impact Oracle’s Growth Plans
TD Cowen’s report highlights concerns from both equity and debt investors regarding Oracle’s capacity to fund its data center buildout, which is estimated to require roughly $156 billion in capital expenditure. The funding shortfall has already affected Oracle’s relationships with customers, including projects for OpenAI founder Sam Altman, involving the development of AI data centers.
The report states, “Multiple Oracle data-center leases that were under negotiation with private operators struggled to secure financing, preventing Oracle from locking in the necessary capacity.”
Financial Impact and Future Outlook
The layoffs, if they materialize, would represent the largest in Oracle’s recent history. The company had previously cut around 10,000 jobs in late 2025 as part of a $1.6 billion restructuring effort. According to CIO, the layoffs could potentially free up $8 billion to $10 billion in cash flow for Oracle.
Despite these challenges, Oracle remains committed to its growth plans. The company aims to raise between $45 billion and $50 billion in 2026 specifically to fund additional cloud infrastructure capacity, as announced recently.
Other Strategic Moves
In addition to job cuts, Oracle is exploring the sale of its healthcare software division, Cerner, which it acquired for $28.3 billion in 2022. The company is also adopting new strategies to offset financial strains, including asking clients to contribute to infrastructure development and testing a “bring your own chip” (BYOC) model, where customers supply their own hardware to reduce Oracle’s capital expenditure.
Recent Industry Context
The news follows recent layoffs by Amazon, which announced a reduction of 16,000 jobs amid its restructuring related to AI initiatives.
Oracle has yet to issue an official statement regarding the layoffs but continues to navigate a challenging funding environment as it pushes ahead with its cloud and AI expansion plans.
