US tech company Oracle is reportedly considering cutting 20,000 to 30,000 jobs and selling off some parts of its operations to fund the expansion of its AI data-center capacity. A recent report from CIO, referencing TD Cowen, stated that Oracle had already eliminated around 10,000 positions in late 2025 as part of a $1.6 billion restructuring initiative. The potential layoffs, if implemented, would mark the largest workforce reduction in Oracle’s recent history, with estimated cash flow benefits of $8 billion to $10 billion.
Concerns from both equity and debt investors regarding Oracle’s financial capability to support its expansion plans have emerged. This has been exacerbated by the withdrawal of support from several US banks for the company’s expansion endeavors, prompting Oracle to consider layoffs as a strategic move. The report highlighted that Oracle faced challenges in finalizing data-center lease agreements with private operators due to financing difficulties, hindering its capacity expansion efforts.
According to the report, Oracle has been evaluating various strategies to alleviate its capital expenditure burden, which is projected to be approximately $156 billion for the data-center project. One of the options under consideration is the potential sale of its healthcare software division, Cerner, acquired for $28.3 billion in 2022. Additionally, Oracle is exploring innovative approaches such as implementing a “bring your own chip” model, where new customers would provide their own hardware.
Oracle has disclosed its intention to raise between $45 billion and $50 billion in 2026 to enhance its cloud infrastructure capacity. This development comes in the wake of Amazon’s recent announcement of laying off 16,000 employees as part of its AI restructuring plan. Amazon’s job cuts in October 2025 involved shedding 14,000 white-collar positions, representing a fraction of its targeted 30,000 reductions. Despite being Amazon’s largest layoff in its history, the job cuts constituted a small percentage of its vast workforce of 1.58 million employees.
