Oracle faces its largest workforce reduction ever, with potential cuts of 20,000 to 30,000 jobs to generate $8-10 billion in cash flow. The primary driver is a costly $300 billion partnership with OpenAI, demanding $156 billion in capital spending and 3 million GPUs for AI data centers.
Financial Pressures Mount
Oracle has racked up $58 billion in debt recently—$38 billion for Texas and Wisconsin data centers, $20 billion for New Mexico—pushing total debt over $100 billion. US banks are retreating, doubling interest rate premiums and stalling leases, while Oracle’s stock has lost over half its value since September 2025.
Strategic Shifts
New customers must pay 40% upfront, with “bring your own chip” options explored; OpenAI is shifting capacity to Microsoft and Amazon. A potential Cerner sale (acquired for $28.3 billion in 2022) signals AI infrastructure as top priority.
Company Response
Oracle has not commented publicly on the layoffs or financing woes, following 10,000 prior cuts in late 2025. These moves aim to fund $45-50 billion in 2026 cloud expansion amid fierce competition.
