Oracle Layoffs: Tech giant to slash 30,000 jobs as banks pull out from financing AI data centres

Oracle Layoffs: Tech giant Oracle plans to cut up to 30,000 jobs to fund its AI data centers, according to a new report.

Oracle will also sell some of its operations as U.S. banks pull back from investing in the company’s AI data center expansion, according to a CIO report citing a research report by investment bank TD Cowen.

According to the report, the layoffs at Oracle will eliminate approximately 20,000 to 30,000 employees.

“Both equity and debt investors have raised questions about Oracle’s ability to fund this growth,” TD Cowen said in his report, according to CIO.

Financing pressures are already damaging Oracle’s customer relationships. The company has previously undertaken projects to build data centers for Sam Altman’s OpenAI; it’s a commitment that TD Cowen projects at around $156 billion. But,

Over the past few weeks, many US banks have stopped lending to Oracle to expand its AI data centers.

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Layoffs at Oracle: What does it mean for the technology giant?

According to the CIO report citing TD Cowen, layoffs at Oracle would mean the company would generate between $8 billion and $10 billion in free cash flow.

Oracle has not yet released a statement regarding the development.

The funding challenge comes as a result of Oracle’s ambition to expand its data centres; TD Cowen estimates the company needs $156 billion in capital expenditure for such an expansion.

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“Several Oracle data center leases negotiated with private operators have struggled to secure financing, preventing Oracle from securing data center capacity through a lease,” he said.

The potential Oracle layoffs, if they occur, would be the largest in the company’s recent history. The company had cut nearly 10,000 jobs as part of a $1.6 billion restructuring plan in late 2025.

The news comes days after reports that Amazon was laying off 16,000 workers as part of its AI restructuring plan.

What other steps has Oracle taken?

In addition to layoffs, Oracle plans to sell its healthcare software unit Cerner, which it acquired for $28.3 billion in 2022.

Faced with restrictions, the company is trying to find other solutions to offset the impact on its finances.

As part of its strategy, Oracle began soliciting companies, according to a CIO report citing TD Cowen. According to the investment bank, this means asking customers to help build the infrastructure.

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Key Takeaways

Oracle’s layoffs highlight the financial pressures facing technology companies in the AI sector.
The ‘bring your own chip’ strategy marks a change in how companies approach infrastructure costs.
The layoffs signal a broader trend of restructuring in the tech industry as companies adapt to financing challenges.

It is also exploring an arrangement called “bring your own chip” (BYOC), under which new customers would be required to supply their own hardware, removing capital requirements from Oracle’s books.

Oracle expects to increase revenue from $45 billion to $50 billion in 2026 to create additional capacity for its cloud infrastructure, the software company said Sunday.