US technology giant Oracle is reportedly planning to cut 20,000 to 30,000 jobs and sell parts of its business as it looks to finance a major expansion of its artificial intelligence (AI) data-centre capacity, according to a new report.
A report by CIO, citing investment bank TD Cowen, said Oracle had already cut around 10,000 jobs in late 2025 as part of a $1.6 billion restructuring plan. If implemented fully, the proposed layoffs would be the largest in Oracle’s recent history, potentially freeing up $8 billion to $10 billion in cash flow, TD Cowen estimated.
The report noted that both equity and debt investors have raised concerns over Oracle’s ability to fund the massive buildout. Several US banks have reportedly pulled back from lending, forcing Oracle to turn to cost-cutting measures such as layoffs.
“Multiple Oracle data-centre leases that were under negotiation with private operators struggled to secure financing, in turn preventing Oracle from securing the data-centre capacity via a lease,” the report said.
Oracle has not yet commented on the claims.
According to the research house, Oracle’s total capital expenditure requirement could reach $156 billion, prompting the company to explore multiple options to reduce its financial burden. These reportedly include the possible sale of its healthcare software unit Cerner, which Oracle acquired for $28.3 billion in 2022, and a new “bring your own chip” model that asks customers to supply their own hardware.
Oracle has also told investors it expects to raise $45 billion to $50 billion in 2026 to expand its cloud infrastructure capacity.
The development comes amid wider restructuring across the tech sector. Amazon has also announced major workforce reductions as part of its AI strategy, including 16,000 job cuts under a new restructuring plan, following 14,000 white-collar layoffs in October 2025. While Amazon’s cuts are the largest in its history, they represent only a small fraction of its 1.58 million-strong workforce.
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Overall, the reported moves highlight the growing financial pressure on tech giants as they race to build AI-ready data-centre infrastructure at unprecedented scale.
