Oracle may cut up to 30,000 jobs to bankroll massive AI data center push

Oracle is planning to cut between 20,000 and 30,000 jobs as it looks to fund a massive expansion of its AI data center infrastructure, according to a report by CIO citing research from investment bank TD Cowen.

The potential layoffs, which would rank among the largest in Oracle’s recent history, are aimed at freeing up cash as financing conditions tighten for large-scale AI infrastructure projects. TD Cowen estimates that the job cuts could generate between $8 billion and $10 billion in free cash flow for the software and cloud computing company.

The move comes as equity and debt investors increasingly question Oracle’s ability to finance its aggressive buildout of AI-focused data centers. According to TD Cowen, the company faces capital expenditure requirements of roughly $156 billion to support its expansion plans, a figure that has raised concerns across financial markets.

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Those pressures are already beginning to affect Oracle’s operations. The company has been pursuing major data center projects tied to Sam Altman-led OpenAI, but several US banks have reportedly pulled back from lending to Oracle in recent weeks, complicating its efforts to secure funding for new facilities.

TD Cowen noted that multiple Oracle data center leases under negotiation with private operators failed to move forward after financing could not be secured. As a result, Oracle has struggled to lock in the data center capacity it was seeking through lease agreements.

Oracle has not issued an official statement on the reported layoffs or financing challenges.

The expected job cuts would surpass Oracle’s previous workforce reduction in late 2025, when the company eliminated about 10,000 roles as part of a $1.6 billion restructuring plan. The news also follows closely on reports of Amazon cutting roughly 16,000 jobs as part of its own AI-driven restructuring.

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Beyond layoffs, Oracle is exploring additional measures to shore up its finances. The company is reportedly considering selling its healthcare software unit Cerner, which it acquired for $28.3 billion in 2022, as part of a broader effort to reduce capital strain.

Oracle has also begun shifting some infrastructure costs onto customers. According to TD Cowen, the company is increasingly asking clients to contribute to building the underlying data center infrastructure. It is also exploring a “bring your own chip” (BYOC) model, under which new customers would be required to supply their own hardware, reducing Oracle’s upfront capital expenditure.

Despite the challenges, Oracle continues to signal its intent to expand aggressively. The company said on Sunday that it expects to raise between $45 billion and $50 billion in 2026 to add capacity to its cloud infrastructure.

The situation underscores the growing financial strain facing even the largest technology companies as the race to build AI infrastructure accelerates. While demand for AI computing power continues to surge, the scale and cost of data center expansion are forcing companies like Oracle to make difficult trade-offs between growth, capital discipline, and workforce size.