Oracle May Cut Up To 30000 Jobs to Fund AI Data Centre Expansion

US technology major Oracle is assessing large-scale workforce reductions as it faces financing strain tied to its artificial intelligence infrastructure push reported by CIO based on analysis from investment bank TD Cowen, as per news reports. 

Funding Pressure from AI Infrastructure Buildout 

It is reported that Oracle could reduce between 20,000 and 30,000 roles as funding conditions tighten around AI-focused data centre expansion.  

To improve liquidity, Oracle is reportedly changing customer payment structures by asking new clients to pay about 40% of contract fees upfront. It is also exploring a “bring your own chip” model, allowing customers to deploy their own hardware within Oracle environments to reduce infrastructure burden. 

Some customers have delayed or redirected cloud expansion plans as the company slows fresh data centre investments. 

Roles And Business Units Likely at Risk 

As per news report, employees connected to data centre operations and non-core divisions may be most exposed to potential layoffs. Customers could also see indirect impact through tighter contract terms and slower capacity rollouts. 

The proposed cuts would mark the company’s largest workforce reduction in recent years. Oracle had already eliminated roughly 10,000 roles in late 2025 and has carried out multiple rounds of staff reductions at Cerner since acquiring the healthcare software business in 2022. TD Cowen estimates that the new cuts could release $8-10 billion in cost savings. 

The company is also said to be evaluating asset sales, including a possible divestment of the Cerner unit, to further reduce capital pressure. 

Shift In Borrowing and Client Spillover 

While several US lenders are reportedly stepping back, some Asian banks are still willing to finance Oracle projects, albeit at higher borrowing costs.  

This may support selective overseas expansion but does not fully address near-term capacity gaps. Because of these constraints, OpenAI has reportedly shifted a portion of its immediate computing demand to rival cloud providers such as Microsoft and Amazon. 

Read More: Oracle Targets $50 Billion Capital Raise for 2026 Cloud Infrastructure Expansion! 

Conclusion 

Oracle’s reported restructuring signals how capital intensity in AI infrastructure is reshaping tech balance sheets, with cost controls and workforce optimisation emerging as key funding levers. 

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