US-based technology giant Oracle is reportedly planning a major workforce reduction that could impact between 20,000 and 30,000 employees globally, representing nearly 10 per cent of its total staff. The move is aimed at freeing up cash flow to support the company’s ambitious investments in artificial intelligence and cloud infrastructure, according to a report by CIO citing investment bank TD Cowen.
The report stated that Oracle is seeking to unlock between $8 billion and $10 billion in cash flow through cost-cutting measures, including layoffs. These funds are expected to support Oracle’s $300 billion partnership with OpenAI and other large-scale AI data centre projects, which require massive upfront capital investment.
As part of its broader cost-optimization strategy, Oracle is also reportedly exploring the sale of certain non-core businesses. Among the units under consideration is Cerner, its healthcare software arm, which Oracle acquired in 2022 for $28.3 billion. The company is yet to officially confirm these plans.
Also Read: India Becomes Russia’s Economic Lifeline Amid Sanctions Report
The report noted growing concerns among equity and debt investors about Oracle’s ability to finance its aggressive expansion. Several US banks have reportedly pulled back from lending to Oracle-linked data centre projects, raising questions over the sustainability of the funding model for the company’s AI buildout.
The speculation around layoffs triggered widespread attention, with “Oracle” emerging as a trending search term on Google Trends on February 2. The potential job cuts have caused anxiety across the global tech workforce, especially amid an ongoing wave of layoffs in the IT sector.
In a related development, Oracle has announced plans to raise between $45 billion and $50 billion in 2026 to expand its cloud infrastructure capacity. Oracle co-founder Larry Ellison said the funding would be secured through a mix of debt and equity to meet growing demand from major clients, including NVIDIA, Meta, OpenAI, AMD, TikTok, and xAI, underscoring the scale of the company’s AI-driven expansion strategy.
Also Read: #JustIn: Whistleblower Report Reveals Decade-Long Electrical Issues in Air India Boeing 787