Oracle layoffs 2026: 30,000 Jobs in fear to fund AI data centres

Oracle could be heading toward one of its biggest workforce reductions yet. Reports suggest the tech giant is considering cutting between 20,000 and 30,000 jobs globally as it shifts focus toward building large-scale artificial intelligence (AI) data centres, a report by CIO suggested.  Also Read: Oracle Layoffs: Over 100 Cloud Jobs Cut Amid Rising AI Costs

While the company has not officially confirmed the layoffs, the development highlights how aggressively big tech firms are now investing in AI, even if it means reshaping their workforce. Also Read: Bing Chat is so power-hungry, Microsoft had to borrow Oracle's servers

Why Oracle May Be Planning Layoffs

According to a report by CIO, citing research from investment bank TD Cowen, the potential layoffs are largely tied to Oracle’s expensive AI infrastructure ambitions. The company reportedly needs massive capital to support these projects, and reducing employee costs could free up $8 billion to $10 billion in cash flow.

As per the reports, Oracle is believed to require nearly $156 billion in capital expenditure to meet its infrastructure commitments, which includes projects like the Stargate initiative developed alongside partners such as OpenAI and SoftBank. What makes it more worrisome is that several US banks are said to have stepped back from funding the expansion after raising concerns about the scale of the project and Oracle’s financial capacity.

What else? The report indicates that employees working in non-core divisions and data centre-related roles could face the biggest impact as the company restructures around its long-term AI strategy. This wouldn’t be the first round of cuts either. Oracle had already reduced around 10,000 roles in late 2025 and has trimmed staff multiple times at Cerner, the healthcare software firm it acquired in 2022. Interestingly, Oracle is now also reportedly exploring the possibility of selling Cerner to generate additional funds.

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Oracle’s situation shows that rising borrowing costs, investor scrutiny, and funding challenges are forcing companies to make difficult decisions. Whether this signals a slowdown in AI spending or simply a recalibration remains to be seen. For now, one thing is clear, the race to dominate AI is reshaping how tech companies spend, hire, and grow.