Oracle is facing increasingly close scrutiny from investors surrounding the construction of AI infrastructure (artificial intelligence). Sources say that this cloud service provider may consider massively laying off employees as a cost-cutting measure to support its data center ambitions.
One of the options being considered for the company led by Larry Ellison is to cut 20,000 to 30,000 employees to release 8 to 10 billion USD in cash. Sources also estimate that Oracle may sell assets such as the Cerner medical technology platform that the company acquired for 28.3 billion USD in 2022.
Although Oracle has not confirmed the layoff, this will not be the first technology giant to consider cutting jobs to cope with increasing pressure on investment in artificial intelligence. Major US companies such as Amazon, UPS and Dow have announced estimated cuts of a total of 52,000 jobs, and experts say that companies like Oracle "seem to be very eager to use artificial intelligence to reduce labor costs".
Oracle's debt has continued to increase in recent months, even as the company's destiny is increasingly tied to OpenAI, a non-profit company that has not yet disclosed details about how to finance its infrastructure plans.
On February 1st, Oracle said it is looking to raise from $45 to $50 billion in 2026 by combining loan and equity financing. They want to strengthen their capabilities to meet contract demand from Oracle Cloud Infrastructure's largest customers, including AMD, Meta, Nvidia, OpenAI, TikTok, xAI and other customers.
In September 2025, Oracle signed an agreement with OpenAI, under which ChatGPT manufacturer will purchase computing worth 300 billion USD from this cloud service provider within 5 years.
In its report, TD Cowen estimates that Oracle's acquisition of OpenAI will require 156 billion USD of investment. Oracle is also said to be building AI infrastructure for Meta and Nvidia with a total investment of 523 billion USD.
This company is also part of the Stargate Project, in which some other partners such as Softbank and OpenAI have committed to invest 500 billion USD to build data centers and other related infrastructure in the US in the next four years.
