Oracle Considers 20,000-30,000 Job Cuts for AI Data Center Funding

Oracle is reportedly considering cutting 20,000 to 30,000 jobs to generate $8-10 billion in cash flow and fund its massive AI data center expansion, as US banks retreat from financing these projects.

Background on the Layoff Plans

Investment bank TD Cowen highlighted these potential workforce reductions in a research report, noting Oracle’s struggle to finance $156 billion in capital expenditures just for its OpenAI deal, part of broader commitments totaling $523 billion with clients like Meta and Nvidia. The layoffs would target employees in data centers and non… core units, building on 10,000 cuts in late 2025.

Financing Challenges Driving the Cuts

US banks have doubled interest rate premiums on Oracle’s data center loans since September, stalling deals and creating capacity bottlenecks.
Oracle has raised $58 billion in debt recently ($38B for Texas/Wisconsin, $20B for New Mexico), but needs far more; Asian banks are filling some gaps at higher rates.
Private data center operators can’t secure financing for Oracle leases, slowing procurement… Oracle was notably absent from major US roadmap lists.

Cost-Cutting Strategies Beyond Layoffs

Oracle is exploring selling its Cerner healthcare unit, acquired for $28.3 billion in 2022, and requiring 40% upfront payments from new customers (excluding large AI ones). It’s also considering “bring your own chip” (BYOC) models to shift hardware costs to clients, plus vendor financing.

“Both equity and debt investors have raised questions regarding Oracle’s ability to finance this buildout.”
-TD Cowen research report

Customer and Market Impact

Clients like OpenAI have shifted capacity to Microsoft and Amazon due to delays; Oracle is slowing new investments, prompting some to delay cloud plans. Oracle stated it’s raising funds via debt and equity for contracted demand from AMD, Meta, NVIDIA, OpenAI, and others.

Context in Tech Layoffs

This would mark one of Oracle’s largest reductions, amid 2026 tech layoffs focused on middle management and non-core roles to prioritize AI infrastructure. Oracle has not commented on the TD Cowen report.

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