Oracle May Cut Up to 30,000 Jobs to Fund $156 Billion AI Data Centre Expansion: Report

Oracle may be heading into one of its most challenging periods in recent years as it struggles to finance an aggressive expansion into AI-driven data centres. According to a new report, the US software major could lay off as many as 30,000 employees in a bid to free up capital for massive infrastructure investments, raising concerns about the future of its workforce and cloud ambitions.

Oracle Could Lay Off Up to 30,000 Employees Amid AI Expansion Pressure

Oracle is reportedly considering one of the largest job cuts in its history, with potential layoffs ranging between 20,000 and 30,000 employees, as the company searches for ways to fund its rapidly expanding AI data centre strategy.

The revelation comes from a report published by CIO, citing research conducted by investment bank TD Cowen, which highlights growing concerns among investors about Oracle’s financial capacity to sustain its ambitious buildout plans.

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

Why Oracle Is Considering Massive Job Cuts

AI Data Centre Expansion Comes at a High Cost

At the heart of Oracle’s financial strain is its aggressive commitment to building large-scale AI data centres for major clients, including Sam Altman’s OpenAI. According to TD Cowen’s estimates, Oracle’s infrastructure expansion could demand close to $156 billion in capital expenditure.

This level of spending has reportedly made lenders cautious. In recent weeks, several US banks have stepped back from financing Oracle’s AI projects, significantly limiting the company’s access to fresh capital.

Layoffs Could Unlock Billions in Free Cash Flow

With external funding options shrinking, Oracle is now looking inward to generate liquidity.

Cost-Cutting as a Cash Strategy

TD Cowen estimates that cutting tens of thousands of jobs could help Oracle generate between $8 billion and $10 billion in free cash flow. This capital would likely be redirected toward constructing and operating AI-focused data centres that support Oracle’s cloud and enterprise AI services.

So far, Oracle has not issued any official statement addressing the report. However, the sheer scale of the potential layoffs suggests the company is facing difficult trade-offs to sustain its long-term AI ambitions.

Data Centre Deals Stall Due to Funding Challenges

The report also highlights operational hurdles beyond workforce reductions.

Lease Negotiations Hit Roadblocks

Several data centre lease agreements between Oracle and private operators have reportedly stalled because financing could not be secured. Without these leases, Oracle has been unable to obtain the additional infrastructure capacity required to scale its cloud and AI offerings.

This bottleneck could further slow Oracle’s growth in the highly competitive AI cloud market.

Layoffs Would Far Exceed Previous Job Cuts

If implemented, the proposed layoffs would mark Oracle’s largest workforce reduction in years.

Comparison With Past Restructuring

• Late 2025: Oracle laid off around 10,000 employees

• Cost of restructuring: $1.6 billion

• Current estimate: Up to 30,000 layoffs, nearly three times the previous figure

Other Cost-Saving Measures Under Consideration

Oracle is also exploring multiple alternative strategies to reduce financial pressure.

Potential Sale of Cerner

One option reportedly under review is the sale of Cerner, Oracle’s healthcare software unit acquired for $28.3 billion in 2022.

Shifting Infrastructure Costs to Customers

Oracle has begun asking customers to take on a larger role in building infrastructure, reducing Oracle’s direct capital expenditure.

Another experimental approach is a “bring your own chip” model, under which new cloud customers would supply their own hardware. This allows Oracle to expand services without adding costly assets to its balance sheet.