Oracle : Tech Giant Weighs Up to 30,000 Layoffs Amid AI Data Centre Funding Woes

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San Francisco: Tech giant Oracle is reportedly preparing to cut as many as 30,000 jobs amid mounting financial pressure linked to its ambitious artificial intelligence (AI) data centre expansion, according to industry reports. The potential layoffs are tied to a retreat by several U.S. banks from financing Oracle’s planned AI infrastructure projects, sources said.

Citing a research note from investment bank TD Cowen, the IT publication CIO reported that Oracle is considering cutting between 20,000 and 30,000 positions and may also divest certain business units to free up cash in response to rising financing costs and scepticism among investors about its ability to fund its AI buildout.

The bank pullback has driven up borrowing costs for the company, nearly doubling interest rate premiums on project financing, and has stalled data centre lease negotiations that Oracle had been pursuing with private operators, according to analysts.

The possible workforce reductions are intended to generate between $8 billion and $10 billion in additional cash flow, part of broader efforts to support the company’s capital-intensive AI ambitions. This includes commitments to provide infrastructure for major AI customers such as OpenAI and others, which could require tens of billions of dollars in capital expenditures over the next several years.

Oracle has not officially confirmed the scale of potential layoffs or the details of a restructuring plan, but industry observers note that such cuts would mark one of the largest workforce reductions in the company’s recent history. The move follows smaller layoffs in late 2025 linked to an organisational restructuring plan.

In addition to workforce reductions, the company is reportedly exploring other measures to reduce financial strain, including the possible sale of business units such as its Cerner healthcare software division, acquired in 2022, to further bolster funding for its AI infrastructure strategy.

If implemented, the sweeping changes reflect the broader shift in the technology sector as major players adjust strategy and staffing to balance rapid AI expansion with tighter financing and investor scrutiny.