Oracle Plans Up to 30000 Job Cuts for AI Expansion

Mumbai | February 2, 2026 | SKY LINK TIMES

Oracle Plans Up to 30000 Job Cuts for AI Expansion:

US-based technology giant Oracle is reportedly considering laying off between 20,000 and 30,000 employees as part of a sweeping effort to finance the expansion of its AI-driven data centre infrastructure, according to a new report.


Oracle Plans Up to 30000 Job Cuts for AI Expansion
Oracle Plans Up to 30,000 Job Cuts for AI Expansion

The move, if executed, would mark the largest round of layoffs in Oracle’s recent history, as the company pivots aggressively towards artificial intelligence and cloud computing.

Layoffs Could Free Up $10 Billion

According to a report by CIO, citing investment bank TD Cowen, Oracle had already cut around 10,000 jobs in late 2025 under a $1.6 billion restructuring plan.

TD Cowen estimates that the proposed additional job cuts could free up $8 billion to $10 billion in cash flow, helping Oracle meet the massive capital requirements of its AI expansion.

However, Oracle has not officially commented on the report so far.

AI Data Centres Face Funding Challenges

The report noted that both equity and debt investors have raised concerns over Oracle’s ability to finance its ambitious AI data centre buildout.

Several US banks have reportedly scaled back lending, forcing Oracle to explore alternative funding strategies, including cost-cutting measures.

“Multiple Oracle data-centre leases under negotiation with private operators struggled to secure financing,” the report said, adding that this prevented Oracle from securing capacity through leasing arrangements.

$156 Billion Capex and Asset Sale Options

TD Cowen estimates Oracle’s required capital expenditure at around $156 billion, highlighting the scale of its AI infrastructure ambitions.
To reduce its capital burden, Oracle is exploring a range of measures, including the possible sale of its healthcare software unit Cerner, which it acquired for $28.3 billion in 2022.
The company has also reportedly asked new customers to supply their own hardware under a “bring your own chip” (BYOC) model to lower upfront costs.


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$50 Billion Fundraise Planned in 2026

Oracle has told investors that it expects to raise between $45 billion and $50 billion in 2026 to build additional cloud and AI infrastructure capacity.
The move underscores the growing competition among global tech giants to dominate the AI cloud space.

Part of a Broader Tech Layoff Trend

The news follows recent reports of Amazon planning to lay off 16,000 employees as part of its AI restructuring strategy.

In October 2025, Amazon had already reduced 14,000 white-collar jobs, making it one of the largest workforce reductions in its history, though it still represents a small fraction of Amazon’s 1.58 million-strong workforce.


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