Oracle Layoff Alert: 30,000 Jobs at Risk as AI Costs Spiral Out

Software giant Oracle is reportedly weighing a massive workforce reduction that could impact between 20,000 and 30,000 employees.

This potential move, the largest in the company’s history, comes as “Big Red” scrambles to finance a staggering $300 billion, five-year commitment to Sam Altman’s OpenAI while facing a tightening credit market in the United States.

The $300 Billion OpenAI Dilemma

According to a recent research report by investment bank TD Cowen, Oracle is caught in a high-stakes capital squeeze.

The company has already burned through approximately $58 billion in debt over the last two months to build specialized AI data centers in Texas, Wisconsin, and New Mexico.

With a total debt load now exceeding $100 billion, investors are growing wary.

The TD Cowen report suggests that laying off up to 30,000 staff would free up an estimated $8 billion to $10 billion in essential cash flow needed to keep its AI ambitions alive.

Banks Retreat as Costs Surge

The urgency for cost-cutting is driven by a quiet retreat from traditional U.S. lenders.

Multiple banks have reportedly pulled back from financing Oracle-linked data center projects, citing the extreme capital intensity and financial risks involved.

Consequently, Oracle’s borrowing costs have spiked, with interest rate premiums doubling since late 2025.

While some Asian lenders remain willing to provide capital, the domestic funding crunch has stalled several critical infrastructure leases.

Radical Measures By Oracle: Asset Sales and Upfront Payments

Beyond layoffs, Oracle is exploring drastic operational shifts.

The company is reportedly considering the sale of Cerner, the healthcare technology unit it acquired for $28.3 billion in 2022.

Additionally, Oracle has begun requiring new customers to pay up to 40% of contract values upfront—essentially asking clients to co-fund the very infrastructure they intend to use.

Other strategies include “Bring Your Own Chip” (BYOC) arrangements, where customers provide their own GPUs to reduce Oracle’s immediate capital expenditure.

As the AI arms race intensifies, Oracle’s struggle highlights the immense financial strain of building the “physical backbone” of artificial intelligence.

While the company has not yet issued a formal statement, the market remains on high alert for what could be a foundational restructuring of the tech titan.

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