Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: brutal shake-up fuels massive data centre push in Simple Termsand what it means for users..
Oracle AI job cuts are back in the spotlight, and this time the numbers are stark.
Oracle AI job cuts: Oracle weighs up to 30,000 layoffs
Oracle is reportedly considering cutting between 20,000 and 30,000 jobs worldwide as it scrambles to finance an aggressive expansion of AI data centres. Investment bank TD Cowen estimates the proposed layoffs could free up between 8 billion and 10 billion dollars in cash flow for the cloud and software giant. The company has not publicly confirmed any job cut plan, and no timetable has been disclosed so far.
The potential Oracle AI job cuts come as several major US banks have pulled back from funding the company’s large-scale data centre buildout, citing concerns over the size and risk of the project. TD Cowen’s research note suggests lenders and investors are questioning whether Oracle can sustain normal operations while committing to such heavy capital spending.
Oracle AI job cuts: Financing strain behind AI data centre expansion
Oracle’s AI ambitions have grown sharply through its partnership with OpenAI, SoftBank and others under the Stargate infrastructure programme, which aims to build vast AI-focused data centre capacity in the US and beyond. TD Cowen estimates Oracle will need around 156 billion dollars in capital expenditure to meet its current data centre commitments linked to these AI projects. That requirement comes on top of existing debt, after Oracle tapped bond markets heavily to finance earlier deals and infrastructure spending.
To ease the pressure, Oracle is said to be exploring multiple options alongside Oracle AI job cuts, including requiring some new cloud customers to pay about 40 percent of contract value upfront to help fund infrastructure. The company is also reported to be weighing asset sales.
Cerner sale and wider industry context
One move under consideration is a possible sale of Cerner, Oracle’s healthcare software business, which it bought in 2022 for roughly 28.3 billion dollars in an all-cash deal. Analysts say disposing of Cerner could unlock additional capital, though it would mark a sharp reversal of Oracle’s earlier bet on healthcare as a key growth area.
The Oracle AI job cuts discussion comes amid a broader wave of technology layoffs linked to AI shifts, with companies from Amazon to Meta and others cutting roles while ploughing money into AI infrastructure and tools. For workers and investors, Oracle’s next steps will be a test of whether its costly push into AI data centres can be sustained without deep and lasting damage to its core business.