Oracle Corporation
Oracle layoffs Wikimedia Commons

Oracle Corporation could cut between 20,000 and 30,000 jobs as the company expands its artificial intelligence infrastructure, according to a research report from investment bank TD Cowen. The potential layoffs would represent one of the largest workforce reductions in the company's history.

The research note said the cuts could free between £6.2 billion and £7.7 billion ($8 billion to $10 billion) in cash flow. The funds could be redirected toward the construction of new data centres and other infrastructure required to run large AI systems.

Oracle has not publicly confirmed the reported layoffs and did not immediately respond to requests for comment on the TD Cowen report. The company currently employs about 160,000 people worldwide.

AI Infrastructure Costs

Oracle has been expanding its cloud and artificial intelligence capacity to support computing power used to train and run AI models. The infrastructure needed for these systems includes specialised processors, large data centres and high-capacity networking equipment.

The report estimated that Oracle's long-term AI infrastructure spending could reach around £120 billion ($156 billion). The investment is tied to cloud computing agreements and partnerships involving companies developing generative AI systems. The expansion is driven by rising demand for cloud computing used to train large AI models and run generative AI services.

Financing Pressure

According to the report, several US banks have reduced lending connected to some of Oracle's data-centre projects. The report also said borrowing costs have increased for some of the company's data-centre projects.

Oracle has been raising new financing to support its infrastructure expansion. The company previously outlined plans to raise between £33.8 billion and £37.6 billion ($45 billion and $50 billion) through debt and other funding to increase cloud capacity.

Possible Sale of Cerner Unit

Oracle is also reportedly considering a sale of its healthcare software business, Cerner, which it acquired in 2022 for approximately £21.8 billion ($28.3 billion). The potential sale was mentioned in the research note as another potential source of funding for the company's AI infrastructure projects.

Cerner has undergone several rounds of restructuring since the acquisition, including workforce reductions tied to operational changes. Oracle has not confirmed that the business will be sold.

Changes to Customer Contracts

Oracle has reportedly introduced new financial requirements for some customers purchasing cloud infrastructure. Some clients are now being asked to provide upfront payments of around 40 per cent for new computing capacity, according to Business Standard.

Oracle has also begun offering a 'bring your own chip' (BYOC) option. Under this arrangement, customers supply their own processors or graphics processing units while Oracle provides the data-centre infrastructure needed to run the systems.

Workforce Reductions

If implemented, the reported layoffs could affect roughly 10 per cent of Oracle's global workforce. The company currently employs about 160,000 people worldwide.

Oracle previously eliminated around 10,000 jobs in 2025 during a restructuring programme that included reductions within the Cerner division. Reuters reported that the company has begun reviewing hiring plans in some cloud teams as it expands its artificial intelligence infrastructure.

The company has signed cloud agreements with firms developing large AI systems that require significant computing capacity. Oracle has not confirmed whether the larger workforce reductions described in the report will move forward.

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