Oracle is reportedly preparing to cut between 20,000 and 30,000 jobs as it grapples with rising borrowing costs and a funding crunch threatening its ambitious AI data centre expansion.
The potential layoffs would be among the largest in the company’s history.
According to a CIO report citing investment bank TD Cowen, the job cuts could free up between $8 billion and $10 billion in cash, funds the company urgently needs to support its AI infrastructure plans. TD Cowen said Oracle is facing mounting pressure as US lenders pull back from financing its data centre projects, forcing the company to consider aggressive cost cutting.
Oracle has not publicly commented on the report.
However, the timing comes as the company competes with Amazon, Microsoft, and Google in the high stakes race for cloud and AI dominance, a battle that requires sustained multibillion dollar investment.
TD Cowen estimates Oracle’s infrastructure commitments now require around $156 billion in capital spending, a figure that has unsettled both equity and debt investors. Several US banks that previously supported Oracle’s rapid expansion have reportedly stepped away. The report said lenders have nearly doubled the interest rate premiums charged to Oracle since September, stalling several projects.
To ease financial pressure, Oracle is also exploring strategic options, including a possible sale of Cerner, the healthcare software firm it acquired for $28.3 billion in 2022.
The company is also testing alternative financing models, including asking customers to contribute directly to data centre funding and considering a bring your own chip approach.
Despite these challenges, Oracle reportedly plans to raise $45 billion to $50 billion in 2026 to expand cloud capacity, though analysts warn its strategy may need rethinking if funding conditions worsen.