Oracle Corporation could cut between 20,000 and 30,000 jobs as the company expands its artificial intelligence infrastructure, according to aresearch reportfrom investment bank TD Cowen. The potential layoffs would represent one of thelargest workforce reductionsin the company's history.
The research note said the cuts could free between £6.2 billion and £7.7 billion ($8 billion to $10 billion) in cash flow. The funds could be redirected toward the construction of new data centres and other infrastructure required to run large AI systems.
Oracle has not publicly confirmed the reported layoffs and did not immediately respond to requests for comment on the TD Cowen report. The company currently employs about 160,000 people worldwide.
Oracle has been expanding its cloud and artificial intelligence capacity to support computing power used to train and run AI models. The infrastructure needed for these systems includes specialised processors, large data centres and high-capacity networking equipment.
I am hearing from multiple sources inside Oracle that the company is planning thousands of job cuts. Potentially 20,000 to 30,000 roles across the board.This is to free up $8-10 billion in cash flow. All to fund massive AI data center expansion.US banks are pulling back from…https://t.co/g2GnSfVtA2
The report estimated that Oracle's long-term AI infrastructure spending could reach around £120 billion ($156 billion). The investment is tied to cloud computing agreements and partnerships involving companies developing generative AI systems. The expansion is driven by rising demand for cloud computing used to train large AI models and run generative AI services.
According to the report, several US banks have reduced lending connected to some of Oracle's data-centre projects. The report also said borrowing costs have increased for some of the company's data-centre projects.
Recent media activity about the Abilene site are false and incorrect. First, Crusoe and Oracle are operating in lockstep to deliver one of the world's largest AI Data centers in Abilene at record-breaking pace. Two buildings are completely operational and the rest of the campus…
Oracle plans layoffs that could reach 30,000 as it faces a cash crunch amid heavy AI spending!pic.twitter.com/iXQU92FntM
Oracle has been raising new financing to support its infrastructure expansion. The company previously outlined plans to raise between £33.8 billion and £37.6 billion ($45 billion and $50 billion) through debt and other funding to increase cloud capacity.
Source: International Business Times UK
