Oracle Eyes Up to 30,000 Job Cuts to Fund Massive AI Data Centre Expansion

Oracle could soon face one of the most significant workforce reductions in its history as the technology giant looks to bankroll an aggressive expansion into artificial intelligence infrastructure. According to a new report, the company is considering cutting between 20,000 and 30,000 roles to ease mounting financial pressure tied to its ambitious data centre projects.

The findings, published by CIO and based on research from investment bank TD Cowen, suggest Oracle is scrambling to secure funding for large-scale AI-focused facilities designed to support cloud computing and next-generation services. These projects, while strategically important, come with a staggering price tag.

“Both equity and debt investors have raised questions regarding Oracle’s ability to finance this buildout,” TD Cowen said, as quoted in the report.

At the heart of Oracle’s spending surge are long-term commitments to build and operate data centres for high-profile customers, including Sam Altman’s OpenAI. Analysts estimate the company’s AI expansion could demand nearly $156 billion in capital expenditure over time. However, securing the money has proven challenging. Several US banks have reportedly stepped back from lending for these ventures, limiting Oracle’s financing options.

With traditional funding routes tightening, Oracle appears to be turning inward to generate liquidity. TD Cowen estimates that cutting tens of thousands of jobs could help the company free up between $8 billion and $10 billion in cash flow. Those savings would likely be channelled directly into building and maintaining AI infrastructure.

So far, Oracle has not commented publicly on the reported plans. Still, the potential scale of the layoffs underscores the difficult trade-offs the company may face as it balances growth ambitions with financial realities.

The pressure extends beyond staffing. The report notes that multiple data centre lease agreements with private operators have stalled due to funding gaps. Without these deals, Oracle may struggle to quickly add the capacity needed to compete in the rapidly evolving AI and cloud markets.

If the cuts materialise, they would far exceed the company’s previous restructuring efforts. In late 2025, Oracle trimmed around 10,000 jobs under a $1.6 billion cost-reduction programme. The current proposal could nearly triple that number.

Oracle is also evaluating additional cost-saving strategies. One possibility is the sale of Cerner, the healthcare technology business it acquired for $28.3 billion in 2022. Divesting the unit could inject fresh capital and ease debt burdens.

Meanwhile, the company is experimenting with operational changes to limit spending. Some customers may be asked to shoulder more responsibility for infrastructure investments, and a “bring your own chip” approach could require new cloud clients to provide their own hardware, reducing Oracle’s upfront costs.

Together, these measures reflect the scale of Oracle’s AI ambitions — and the financial strain that comes with chasing them.