Oracle plans 20,000-30,000 job cuts to fund data centre expansion

US technology giant Oracle is considering massive job cuts as it struggles to fund its artificial intelligence (AI) data centre expansion, CIO reported, citing investment bank TD Cowen. The company may lay off between 20,000 and 30,000 employees as US banks pull back from financing its projects.

Who will be affected?

Employees linked to data centres and non-core units are likely to be most at risk. Customers are also likely to feel the impact. To cut costs, Oracle is asking new customers to pay 40 per cent of fees upfront, the report said. It is also exploring “bring your own chip” models, where customers supply their own hardware. Some firms have delayed or shifted their cloud plans as Oracle slows new data centre investments.

 

 

The potential layoffs would be Oracle’s biggest in recent years. The company had already cut around 10,000 jobs in late 2025 and has reduced staff at Cerner multiple times since buying it.

Why are layoffs being carried out

The proposed layoffs are aimed at saving money and improving cash flow, the report said. TD Cowen estimates that cutting jobs could free up $8-10 billion. According to the report, the company also plans to sell some businesses, including its healthcare software unit Cerner, which it bought in 2022, to reduce spending pressure. The move comes as US banks grow cautious about lending for Oracle’s AI data centres.

Borrowing shifts to Asia

While US banks are stepping back, some Asian banks are still lending to Oracle, though at higher interest rates. This may help Oracle expand outside the US, but it does not solve its shortage of data centre capacity.

 

Because of these delays, OpenAI has reportedly moved part of its near-term computing needs to rivals like Microsoft and Amazon.

Tech layoffs on the rise

Tech layoffs have been on the rise, with many companies, including Amazon, Meta, and Google, carrying out several rounds of layoffs in recent years.

 

According to the data from Layoffs.fyi, a platform that tracks tech layoffs,123,941 tech employees were laid off across 269 tech companies in 2025.