Tech Layoffs 2026: Oracle Plans One of Biggest Layoffs, May Cut Up to 30 Thousand Jobs to Fund AI Data Centre

Tech giant Oracle is reportedly preparing for one of the largest job cuts in its history, with plans to slash between 20 to 30 Thousand job roles, as mounting costs from its ambitious artificial intelligence data centre expansion strain finances. The move is aimed at freeing up cash to support Oracle's massive infrastructure commitments tied to its partnership with OpenAI.

Tech Layoffs 2026: Oracle May Cut 20 to 30 Thousand Jobs

According to a report by CIO, citing research from investment bank TD Cowen, Oracle is facing increasing pressure from both equity and debt investors over its ability to finance the scale of its AI build-out. The report suggests the layoffs could help Oracle generate $8 billion to $10 billion in additional cash flow.

Oracle Layoffs: OpenAI Partnership Puts Enormous Financial Pressure on Oracle

At the centre of Oracle's financial strain is its deepening relationship with Sam Altman's OpenAI. TD Cowen estimates Oracle's total capital commitment for OpenAI-linked infrastructure at around $156 billion, including the deployment of nearly 3 million GPUs.

One assessment quoted in the report bluntly states that the "OpenAI deal is eating Oracle alive financially."

Debt Surge Accelerates as Oracle Builds AI Data Centres

To support its expanding AI infrastructure, Oracle has rapidly loaded up on debt. Within just two months, the company raised $58 billion in fresh borrowing, allocating around $38 billion for data centres in Texas and Wisconsin, and another $20 billion for a major new campus in New Mexico.

This recent borrowing only covers a portion of planned spending. Oracle's total debt has now crossed $100 billion, raising concerns among lenders and investors alike about long-term sustainability.

US Banks Pull Back From Oracle AI Projects

TD Cowen notes that several US banks have scaled back financing for Oracle-linked data centre projects, further complicating the rollout of AI infrastructure. Interest premiums charged to Oracle have reportedly doubled since September, pushing borrowing costs into ranges typically associated with junk-rated borrowers.

As a result, multiple data centre lease negotiations have stalled, with private developers unable to secure sufficient funding to move projects forward.

The financial strain is also changing how Oracle deals with customers. New cloud contracts may now require clients to pay up to 40% of the contract value upfront, effectively shifting part of the infrastructure financing burden onto customers.

Oracle is also experimenting with "bring your own chip" arrangements, allowing customers to supply their own hardware to reduce Oracle's capital expenditure.

Cerner Sale Under Review as Oracle Refocuses on AI

In a further sign of strategic realignment, Oracle is reportedly reviewing options for Cerner, the healthcare software firm it acquired in 2022 for $28.3 billion. A potential sale would underscore Oracle's intent to prioritise AI infrastructure over non-core businesses.