Tech giant Oracle is reportedly preparing for the largest layoffs in its history, potentially affecting 20,000 to 30,000 employees. The move comes amid massive investments in artificial intelligence projects and a growing funding shortfall, according to a report by investment bank TD Cowen. The planned layoffs follow a previous round at the end of 2025, when about 10,000 employees were let go.
Oracle has been heavily investing in data centres to support AI initiatives, including infrastructure for OpenAI, led by Sam Altman, with total expenditures estimated at $156 billion. However, US banks have reportedly been hesitant to provide loans due to concerns about Oracle’s financial position. To manage the funding gap, the company plans to save $8–10 billion through workforce reductions.
The financial crunch is also affecting Oracle’s customers. The company is reportedly requiring new clients to pay 40 percent of fees upfront and is even considering a “bring your own chips” policy. Delays in data centre construction have reportedly prompted AI firms like OpenAI to explore cloud services from competitors such as Microsoft and Amazon. In addition, Oracle is weighing the potential sale of Cerner, its $28 billion healthcare software unit acquired in 2022, as part of cost-cutting measures.
Reports indicate that Oracle is now looking to Asian banks for loans, despite higher interest rates than in the US. The impact of the planned layoffs is expected to extend to Oracle offices in Hyderabad and Bengaluru, India. An official announcement on the proposed job cuts is expected later this week, raising concerns among employees globally.