According to a report by CIO, citing investment bank TD Cowen, Oracle is considering cutting between 20,000 and 30,000 jobs and may also look at selling parts of its business, including Cerner, the healthcare software firm it acquired a few years ago. The move comes as US banks pull back from funding Oracle’s large AI data-centre expansion, making it harder and costlier for the company to raise money. Oracle has not issued any official comment so far.
TD Cowen said the possible job cuts alone could free up $8 billion to $10 billion in cash, money Oracle urgently needs right now.
Oracle likely to slash 30,000 Jobs as money pressure mounts
According to a TD Cowen report, cited by the IT-focused magazine CIO, Oracle is weighing a potential sale of Cerner, the healthcare software unit it acquired for $28.3 billion in 2022. Selling Cerner would mark a major shift in the tech giant’s operations.
“These steps come as multiple US banks have pulled back from Oracle-linked data-centre project lending,” TD Cowen said in a research report. The bank added that “both equity and debt investors have raised questions regarding Oracle’s ability to finance this buildout.”
Why is Oracle planning to cut jobs?
According to CIO, citing TD Cowen’s estimates, Oracle’s infrastructure commitments now require around $156 billion in capital spending. That number alone has made lenders nervous. US banks, once willing partners, are stepping away, and the impact is already visible.
As banks retreat, borrowing costs for Oracle have jumped. TD Cowen said lenders have roughly doubled the interest rate premiums they charge Oracle for financing data-centre projects since September.
Those higher costs have stalled deals. TD Cowen explained that “multiple Oracle data-centre leases that were under negotiation with private operators struggled to secure financing, in turn preventing Oracle from securing the data-centre capacity via a lease.” Without funding, private operators cannot build the facilities Oracle needs. And without those facilities, Oracle cannot deliver the computing power its customers are expecting.
In just two months, the company raised around $58 billion, $38 billion for facilities in Texas and Wisconsin, and another $20 billion for New Mexico. But that amount covers only a small part of what Oracle still needs. US banks are unwilling to lend more. Some Asian banks have stepped in, offering loans at premium rates as they look to gain exposure to AI infrastructure growth.
Biggest layoffs in years
If the job cuts happen, they would be Oracle’s largest in recent years. The company cut an estimated 10,000 jobs in late 2025 as part of a $1.6 billion restructuring plan. Cerner has also seen repeated layoffs since Oracle bought it, including cuts in 2023 after problems tied to a US Veterans Affairs contract.
The financial strain is already changing Oracle’s customer relationships. TD Cowen said OpenAI has shifted its near-term capacity needs to Microsoft and Amazon, a major change from just months ago. So far, Oracle has not commented publicly on the reported layoffs or the growing financing challenges.