US technology company Oracle is reportedly planning to cut 20,000 to 30,000 jobs as part of efforts to manage costs while expanding its AI-focused data‑centre network, according to industry sources. This would be one of the largest layoffs in the company’s history.
The job reductions are part of a broader plan to free up $8 billion to $10 billion in cash flow, which Oracle intends to use for building and operating large-scale data centres that can handle advanced AI workloads. The company’s AI push involves collaboration with major partners, including OpenAI.
Oracle’s ambitious expansion comes with a significant price tag. Analysts estimate that the company may need more than $150 billion over several years to fund the new AI infrastructure. Several US banks have reportedly pulled back from lending, citing concerns about the high capital requirements and rising debt levels. This has increased the company’s borrowing costs and created uncertainty around financing its AI data‑centre projects.
To manage these challenges, Oracle is exploring alternative strategies beyond workforce reductions. This includes the potential sale of its Cerner healthcare software unit, acquired for $28.3 billion in 2022, and adopting new models like “bring your own chip” (BYOC), where customers provide their own hardware, reducing Oracle’s capital burden.
The tech giant has already tapped debt markets and raised billions to fund data centres in states such as Texas, Wisconsin, and New Mexico, but these funds cover only a fraction of the total investment needed for AI infrastructure.
If confirmed, these layoffs would surpass Oracle’s previous workforce cuts in late 2025, when about 10,000 employees were let go as part of a $1.6-billion restructuring plan.