Oracle is reportedly preparing to lay off between 20,000 and 30,000 employees as part of a strategy to finance its AI data centre expansion, according to a report by CIO citing investment bank TD Cowen. The move comes amid rising concerns over financing the company’s multi-billion-dollar cloud and AI ambitions.
The planned job cuts would generate an estimated $8 billion to $10 billion in free cash flow, helping Oracle address questions from both equity and debt investors about its ability to fund the data centre buildout. TD Cowen estimates that Oracle requires roughly $156 billion in capital expenditure to support its AI infrastructure goals.
Financing challenges have already affected Oracle’s operations. Several US banks have recently pulled back from lending to the company, including funds for projects with OpenAI that TD Cowen values at around $156 billion. Multiple data centre leases under negotiation with private operators have also struggled to secure financing, limiting Oracle’s ability to expand capacity via leases.
In addition to potential layoffs, Oracle is reportedly considering the sale of its healthcare software unit Cerner, acquired for $28.3 billion in 2022. The company is also exploring a “bring your own chip” (BYOC) approach, requiring new customers to supply their own hardware, shifting capital costs away from Oracle.
If implemented, these layoffs would represent the largest in Oracle’s recent history, surpassing the 10,000-job cut in late 2025 under a $1.6 billion restructuring plan. The announcement follows a series of layoffs across the tech sector, including Amazon’s 16,000-job reduction as part of its AI restructure.
Oracle has stated that it aims to raise $45 billion to $50 billion in 2026 to build additional capacity for its cloud infrastructure, underscoring the company’s ongoing focus on scaling its AI and cloud operations despite financial constraints.
