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Oracle Eyes 30,000 Layoffs for AI Data Centers
2 Feb
Summary
- Oracle may cut 20,000 to 30,000 jobs, about 10% of its workforce.
- Layoffs aim to free $8 billion to $10 billion for AI expansion.
- Company also explores selling businesses, including Cerner unit.
Oracle is contemplating a substantial workforce reduction, with reports suggesting layoffs of 20,000 to 30,000 employees, representing approximately 10% of its global staff.
These potential job cuts are directly linked to funding Oracle's significant investments in artificial intelligence infrastructure. The aim is to generate $8 billion to $10 billion, bolstering its capacity for AI data center expansion and supporting its partnership with OpenAI.
As part of this strategic realignment, Oracle is also exploring the divestment of some of its business segments. Notably, its healthcare software unit, Cerner, acquired for $28.3 billion in 2022, is among the businesses being considered for sale.
These measures are reportedly being considered amid challenges in securing data center project financing, with investors raising concerns about the company's ability to fund its expansion plans. Oracle anticipates raising $45 billion to $50 billion in 2026 through debt and equity financing to build out cloud infrastructure capacity for major clients.
