Oracle plans 20,000-30,000 job cuts to expand AI data centers

Mumbai: The US technology company Oracle is preparing to reduce its workforce by 20,000 to 30,000 jobs. This move is aimed at helping the company raise money to expand its artificial intelligence (AI) data center operations, according to a recent report.

The report, shared by CIO and based on information from the investment bank TD Cowen, mentioned that Oracle had already cut about 10,000 jobs toward the end of 2025. This was part of a larger restructuring plan worth $1.6 billion.

If the company goes ahead with the new layoffs, this would be the biggest reduction in jobs in Oracle’s recent history. TD Cowen also estimated that these job cuts could help Oracle save around $8 billion to $10 billion in cash flow.

Some investors, including those who provide equity and loans, have been worried about Oracle’s ability to pay for the costly expansion of its AI data centers. Because of these concerns, some US banks have recently stopped lending money for this project. This financial challenge has pushed Oracle to consider cutting jobs as a way to save money.

The report added that Oracle had been trying to lease several data center locations from private operators, but the financing problems have made it hard for the company to finalize these deals. Without these leases, Oracle is finding it difficult to increase its data center capacity through leasing.

Oracle has not yet given any official response to these reports.

Research suggests that Oracle’s capital spending needed for this project could be as high as $156 billion. To reduce these costs, Oracle is thinking about various options.

One such option is to sell parts of its business. For example, the company is considering selling its healthcare software unit called Cerner, which it bought in 2022 for $28.3 billion.

Additionally, Oracle has started asking some new customers to provide their own computer chips and hardware as part of a “bring your own chip” program, which helps lower Oracle’s expenses.

The company has told its investors that it plans to raise between $45 billion and $50 billion in 2026. This money will be used to build more cloud computing infrastructure.

This news comes soon after Amazon announced that it will cut 16,000 jobs worldwide as part of its own plan to focus more on AI. Back in October 2025, Amazon had already reduced 14,000 white-collar employees, which was half of its overall target of cutting 30,000 jobs.

Although Amazon’s job cuts are the largest in its 30 years of existence, these reductions make up only a small part of its total workforce, which is about 1.58 million employees.