Oracle May Cut Up To 30,000 Jobs To Fund AI Data Centre Expansion: Report

Oracle Layoffs 2026: As per recent reports, Apple is considering the large-scale layoffs as it is struggling to find secure funding for its ambitious artificial intelligence (AI) data centre expansion. The new report suggests that the US-based technology giant might cut between 20,000 and 30,000 jobs, as many American banks have refused to finance its data centre buildout plans. There were concerns over Oracle’s ability to manage such a massive infrastructure project, even after the OpenAI partnership and others under the Stargate Project.

Oracle Layoffs Linked to AI Data Centre Plans

CIO reports that citing data from investment bank TD Cowen, Oracle might be forced to reduce its workforce significantly to free up capital for its infrastructure push. These layoffs will help Oracle to generate between $8 billion and $10 billion in cash flow. Even after this layoff, this amount is still being considered as insufficient for the company’s long-term expansion goals.

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Oracle is also considering the sale of some business units to raise the additional funds. One of the possible options is the healthcare software arm, Cerner, that was acquired by Oracle in 2022 for $28.3 billion.

Why Banks Are Pulling Back

So, TD Cowen's research indicates that a bunch of US banks have backed off from funding Oracle's data centre expansion. Apparently, they're a bit unsure if Oracle can actually handle the financial side of such a huge project.

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The report adds that Oracle has already raised substantial funds from debt markets and is now struggling to secure additional financing. Rising borrowing costs have also delayed lease agreements with private data centre operators.

Oracle is facing financial pressure behind its large-scale AI infrastructure projects and this is showcased by their plan to cut up to 30,000 jobs. If it turns out to be true, this will be marked as one of Oracle’s biggest workforce reductions in years. This also raises questions about the sustainability of massive AI data centre investments. It is yet to be determined whether this indicates more significant problems for the AI infrastructure sector.