US technology giant Oracle is planning one of the largest workforce reductions in its history, with up to 30,000 jobs expected to be cut as financing pressures mount around its ambitious artificial intelligence data center expansion in the United States. The move comes as several major US banks have reportedly pulled back from lending, raising concerns about Oracle’s ability to fund massive infrastructure projects critical to its AI and cloud strategy.
The development was highlighted in a report by CIO, citing research from investment bank TD Cowen, which said Oracle is facing growing scrutiny from both equity and debt investors over the scale and cost of its planned buildout. As a result, the company is considering layoffs, asset sales, and alternative financing arrangements to shore up cash flow and manage capital expenditure.
Also read: Amazon layoffs announced across the US, UK, and India
Banks pull back from Oracle’s AI data center financing
Multiple US banks have stepped away from financing Oracle’s AI data center expansion over the past few weeks. The pullback has complicated Oracle’s efforts to secure long-term leases and capacity agreements with private data center operators.
“Both equity and debt investors have raised questions regarding Oracle’s ability to finance this buildout,” as quoted by CIO.
Several data center leases under negotiation struggled to obtain financing, preventing Oracle from securing the required infrastructure through leasing arrangements.
Oracle layoffs could impact 20,000 to 30,000 employees
The planned Oracle layoffs are expected to affect between 20,000 and 30,000 employees, making them the largest job cuts undertaken by the company in recent years. The workforce reduction could free up between $8 billion and $10 billion in cash flow.
Oracle has not issued an official statement confirming the layoffs or detailing their scope.
If implemented, the cuts would significantly exceed the company’s previous round of job losses, when Oracle eliminated about 10,000 roles in late 2025 as part of a $1.6 billion restructuring programme.
Also read: UPS Layoffs: 30,000 Jobs to Be Cut as Company Restructures and Ends Amazon Partnership
OpenAI data center commitments add to pressure
Financing challenges have also begun to affect Oracle’s customer relationships. The company had earlier committed to building data centers for Sam Altman’s OpenAI, a project could require capital expenditure of around $156 billion.
The scale of these commitments has intensified investor concerns, particularly as access to traditional bank financing becomes more constrained.
Asset sales and cost-shifting strategies under consideration
Beyond layoffs, Oracle is reportedly exploring the sale of some business units to ease financial pressure. Among the assets under review is Cerner, the healthcare software company Oracle acquired for $28.3 billion in 2022.
The company is also adopting new strategies to shift capital requirements off its balance sheet. Oracle has begun asking some customers to contribute directly to infrastructure development, effectively sharing the cost of building data centers.
In addition, Oracle is considering a “bring your own chip” (BYOC) model, under which new customers would be required to supply their own hardware, reducing Oracle’s upfront investment.
Broader tech industry context
The potential Oracle layoffs come amid a wider wave of job cuts across the technology sector, driven by AI-focused restructuring and rising infrastructure costs. The news follows recent reports of Amazon laying off around 16,000 workers as part of its own AI realignment efforts.
Despite the challenges, Oracle has indicated that it still plans to raise between $45 billion and $50 billion in 2026 to expand capacity for its cloud infrastructure, underscoring the scale of its long-term AI ambitions.