Tag: Oracle

US technology giant Oracle Corporation is reportedly planning large-scale layoffs as it faces rising costs linked to artificial intelligence infrastructure and expanding data-centre operations.

According to multiple reports, the company may cut between 20,000 and 30,000 jobs worldwide, which could affect around 10% of its global workforce. If the plan goes ahead, it would mark one of the biggest job cuts in Oracle’s history.

The expected layoffs come as the company ramps up investments in data centres to support advanced artificial intelligence services. Building and running these facilities requires expensive hardware, including specialised chips and powerful servers needed to train and run AI systems.

A major factor behind the rising spending is Oracle’s partnership with OpenAI, the AI company led by Sam Altman. Oracle has committed significant resources to providing cloud infrastructure that supports OpenAI’s AI models and tools.

Analysts say Oracle may need to invest billions of dollars in new data-centre capacity in the coming years as demand for AI computing continues to grow. Reports suggest that the company is looking at layoffs as a way to free up $8 billion to $10 billion to support these investments.

The company is also facing financial pressure because funding large-scale data-centre projects has become more challenging. Some US banks have reportedly grown cautious about lending money for massive AI infrastructure projects, which has made financing more expensive.

To manage these rising costs, Oracle is reviewing several options. These include cutting operational expenses, asking some customers to make higher upfront payments for cloud services, and possibly selling certain assets to raise funds.

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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.

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