March 9, 2026 Oracle is reportedly considering cutting between 20,000 and 30,000 jobs as it seeks to fund a large expansion of AI data centre infrastructure. The potential layoffs, outlined in research from investment bank TD Cowen cited by CIO, highlight the growing capital pressures facing technology companies racing to build infrastructure for artificial intelligence.
According to the report, Oracle’s planned data centre expansion could require roughly $156 billion in capital expenditures. TD Cowen said investors have begun questioning the company’s ability to finance that scale of infrastructure buildout. “Both equity and debt investors have raised questions regarding Oracle’s ability to finance this buildout,” the firm wrote.
The job cuts, if implemented, could generate between $8 billion and $10 billion in additional free cash flow for Oracle, according to the research. The company has not publicly confirmed the report or issued a statement about potential layoffs.
Financing challenges appear to be affecting Oracle’s broader AI infrastructure strategy. The company had previously committed to building large data centre capacity tied to projects for OpenAI, but several U.S. banks have recently stepped back from financing those expansions, according to the TD Cowen analysis.
The report also said some data centre lease agreements Oracle had been negotiating with private operators failed to secure financing, preventing the company from obtaining additional capacity through leased facilities.
Oracle is exploring other measures to manage the costs of its infrastructure push. TD Cowen said the company has begun requiring some customers to help fund infrastructure buildouts, effectively shifting part of the capital burden onto clients.
Another option under consideration is a “bring your own chip” model, where customers supply their own hardware for AI workloads rather than relying entirely on Oracle-provided infrastructure. This approach could reduce Oracle’s upfront capital requirements for expanding cloud capacity.
The company is also reportedly considering selling certain business units, including its Cerner healthcare software division, which Oracle acquired in 2022 for $28.3 billion.
If implemented, the layoffs would represent Oracle’s largest workforce reduction in recent years. The company cut about 10,000 jobs in late 2025 as part of a restructuring plan valued at $1.6 billion.
