Oracle is preparing for what could become the largest round of job cuts in its history, as financial pressure mounts from its aggressive push into artificial intelligence infrastructure. Market watchers say the company may trim its workforce by as many as 30,000 employees as it scrambles to stabilise its balance sheet.
At the centre of the strain is Oracle’s deepening partnership with Sam Altman-led OpenAI. An analysis by investment firm TD Cowen, a division of TD Securities within TD Bank group, suggests the proposed layoffs could unlock $8–10 billion in cash, money Oracle urgently needs to sustain its rapidly expanding network of AI data centres, many of them built to meet OpenAI’s computing demands, according to media reports.
The scale of spending is staggering. TD Cowen estimates Oracle’s OpenAI-linked capital outlay at nearly $156 billion, including investments in close to three million GPUs. In a span of just two months, Oracle reportedly added $58 billion in debt—$38 billion earmarked for data centres in Texas and Wisconsin, and another $20 billion for a New Mexico campus. Total debt has now surged beyond the $100 billion mark, media reports said.
Yet even that borrowing only scratches the surface of what’s required. Since hitting a high in September 2025, Oracle’s stock has lost more than half its value, erasing roughly $463 billion in market capitalisation and intensifying investor unease.
The stress is also being felt outside the company. Several US lenders have quietly stepped back from financing Oracle-backed data centre projects.
Media reports quoted TD Cowen saying that banks have sharply increased the interest premiums they charge Oracle, pushing borrowing costs closer to junk-grade territory. This has led to stalled lease talks, as private operators struggle to secure funding for new facilities.
While some Asian banks remain willing to lend, the relief is limited, given that most of Oracle’s expansion is focused on the US market.
To conserve cash, Oracle has reportedly begun asking new clients to pay as much as 40% of contract values upfront, effectively sharing the cost of infrastructure build-out. It is also exploring “bring your own chip” arrangements, allowing customers to supply their own hardware.
In another sign of shifting priorities, Oracle is said to be weighing a potential exit from Cerner, the healthcare software firm it bought for $28.3 billion in 2022. A sale would underline how decisively the company is pivoting toward AI, even if it means shedding past acquisitions.
Adding to the pressure, TD Cowen noted that OpenAI has already started shifting some short-term capacity needs to Microsoft and Amazon, fuelling doubts about Oracle’s ability to deliver new infrastructure on schedule. Oracle has so far declined to comment on the layoff reports or its growing financing challenges.
Also Read: Amazon Slashes 16,000 Jobs Globally As Restructuring Continues https://www.vibesofindia.com/amazon-slashes-16000-jobs-globally-as-restructuring-continues/
