Oracle Layoffs 2026: Oracle Considers Up To 30,000 Job Cuts As Funding Pressure Builds: Oracle is weighing deep cost-cutting measures, including tens of thousands of layoffs and potential asset sales,
as financing challenges intensify around its ambitious AI infrastructure expansion.
Oracle has joined the long list of tech companies that have recently announced layoffs due to automation and an AI-led push.
Oracle is considering cutting between 20,000 and 30,000 jobs as US banks scale back lending tied to the company’s large AI data-centre buildout, according to a report by CIO citing investment bank TD Cowen. The pullback has made it significantly harder and more expensive for Oracle to raise capital, forcing management to explore aggressive cost-saving options.
TD Cowen estimates that the potential layoffs alone could free up between $8 billion and $10 billion in cash, funds the company may need urgently as financing conditions tighten. Oracle has not issued any official comment on the report.
According to the Bloomberg Billionaires Index, Ellison ranks sixth globally with an estimated net worth of $218 billion. However, his wealth saw a significant single-day decline of about $3.79 billion and year-to-date losses of roughly $29.6 billion, reflecting the recent financial crunch weighing on stock prices.
Cerner Sale Would Signal Strategic Shift
Beyond layoffs, Oracle is also weighing the possible sale of Cerner, the healthcare IT company it acquired for $28.3 billion in 2022. A divestment would represent a significant shift in Oracle’s strategy, particularly after years of integrating Cerner into its cloud and healthcare ambitions.
TD Cowen said the pressure stems from lenders’ growing unease with Oracle’s infrastructure commitments, which are estimated to require roughly $156 billion in capital spending. Both equity and debt investors, the bank noted, are increasingly questioning Oracle’s ability to finance such a massive buildout.
Rising Borrowing Costs And Stalled Projects
As banks retreat, borrowing costs have climbed sharply. TD Cowen said interest rate premiums charged to Oracle for data-centre financing have roughly doubled since September. The higher costs have already stalled several data-centre lease negotiations with private operators, limiting Oracle’s ability to secure the computing capacity it needs.
Without financing, those operators cannot build facilities, and Oracle cannot meet customer demand for AI-driven cloud services.
Layoffs Would Be Oracle’s Largest In Years
If implemented, the cuts would mark Oracle’s biggest layoffs in recent years. The company eliminated around 10,000 roles in late 2025 as part of a $1.6 billion restructuring. Cerner has also faced repeated job cuts since the acquisition, including layoffs linked to challenges with a US Veterans Affairs contract.
TD Cowen added that the strain is already reshaping customer relationships, noting that OpenAI has shifted near-term capacity needs toward Microsoft and Amazon. Oracle has yet to respond publicly to the reported plans.
