MUMBAI– U.S. technology major Oracle is considering cutting between 20,000 and 30,000 jobs and selling parts of its business as it looks to finance a major expansion of its artificial intelligence data-center infrastructure, according to a new report.
The report, citing investment bank TD Cowen, said Oracle had already eliminated about 10,000 jobs in late 2025 as part of a $1.6 billion restructuring effort. If implemented, the proposed additional layoffs would represent the largest job cuts in the company’s recent history. TD Cowen estimated the reductions could free up between $8 billion and $10 billion in cash flow.
Investor concerns over Oracle’s ability to fund the scale of the planned buildout have intensified, with both equity and debt investors questioning the company’s financing strategy. The report noted that several U.S. banks have recently pulled back from lending for the expansion, prompting Oracle to explore cost-cutting measures, including layoffs.
According to the report, multiple data-center lease deals that Oracle was negotiating with private operators failed to secure financing, preventing the company from locking in additional capacity through leasing arrangements.
Oracle has not commented publicly on the report.
The research firm estimated that the total capital expenditure required for the project could be as high as $156 billion, prompting Oracle to examine various options to reduce its capital burden. These include a possible sale of its healthcare software unit Cerner, which the company acquired for $28.3 billion in 2022.
Oracle has also reportedly asked some new customers to provide their own hardware under a “bring your own chip” model. The company has told investors it expects to raise between $45 billion and $50 billion in 2026 to fund the expansion of its cloud infrastructure.
The report comes amid broader restructuring across the tech sector linked to AI investments. Recent disclosures showed Amazon laying off thousands of employees as part of its own AI-driven reorganization, underscoring the scale of workforce changes accompanying the race to build next-generation computing infrastructure. (Source: IANS)
