Oracle layoffs: Tech giant may slash up to 30,000 jobs to fund AI data centres

Oracle layoffs: US software major Oracle is reportedly considering one of the largest workforce reductions in its history as it struggles to fund an aggressive expansion of artificial intelligence data-centre infrastructure, amid rising borrowing costs and a pullback by major lenders.

According to a report by CIO, citing a research note from investment bank TD Cowen, Oracle is exploring layoffs of between 20,000 and 30,000 employees as part of a broader effort to free up cash and reduce capital strain. The proposed cuts follow the elimination of around 10,000 roles in late 2025 under a $1.6 billion restructuring programme.

TD Cowen estimates the latest round of job reductions could unlock between $8 billion and $10 billion in free cash flow – funds the company is said to urgently need to continue building AI-ready cloud infrastructure at scale.

The report highlights growing concern among both equity and debt investors over Oracle’s ability to finance its AI buildout. Several US banks have reportedly stepped back from lending to the company in recent months, citing the sheer scale of capital required and the rising cost of financing.

TD Cowen pegs Oracle’s total capital expenditure commitments for AI and cloud infrastructure at roughly $156 billion. As interest rate premiums charged by lenders have surged since September, multiple data-centre projects have struggled to move forward.

“Multiple Oracle data-centre leases that were under negotiation with private operators struggled to secure financing, in turn preventing Oracle from securing the data-centre capacity via a lease,” the report said.

With external funding becoming harder to secure, workforce reductions are emerging as one of the most immediate levers available to Oracle. By trimming staff, the company can rein in costs while still pushing ahead with its AI and cloud plans.

If it goes through, this would be Oracle’s biggest round of job cuts in years – a clear sign that even large, established tech firms are feeling the financial pressure as they pour money into expensive AI infrastructure.

To reduce its capital burden, Oracle is also reviewing other strategic options. One of the most significant under consideration is the potential sale of Cerner, the healthcare software firm it acquired for $28.3 billion in 2022.

A sale would represent a sharp shift from Oracle’s earlier strategy of positioning Cerner as a cornerstone of its healthcare cloud ambitions.

In parallel, the company is experimenting with alternative financing models. According to the report, Oracle has begun asking some new customers to supply their own hardware under a so-called “bring your own chip” model, effectively shifting part of the infrastructure cost off its balance sheet.

Oracle’s reported plans come amid a wider wave of restructuring across the technology sector, as companies redirect resources towards AI while trimming traditional roles. Recent reports say Amazon has already let go of thousands of employees as part of an AI-driven overhaul, even as it keeps spending big on data centres and computing power.

The pattern is playing out across Big Tech: companies are cutting jobs to control costs, while still pumping billions into AI infrastructure they see as essential for staying competitive in the long run.

Despite the funding challenges, Oracle has told investors it expects to raise between $45 billion and $50 billion in 2026 to build additional cloud capacity. Whether that target can be met without deeper cost-cutting or asset sales remains uncertain.