Oracle is planning layoffs affecting about 20,000 to 30,000 employees, with TD Cowen estimating the move could generate $8 billion to $10 billion in free cash flow. The plan is tied to funding an AI data-centre buildout that TD Cowen estimates would require about $156 billion in capital expenditures.
TD Cowen reported that equity and debt investors have raised questions about Oracleâs ability to finance the expansion and that several U.S. banks have pulled back from lending for the buildout. The report also said multiple data-centre leases under negotiation with private operators struggled to secure financing, preventing Oracle from securing capacity via leases.
Oracle is considering selling activities, including exploring a sale of its Cerner healthcare software unit acquired in 2022 for $28.3 billion. The company has begun requiring clients to help build infrastructure and is exploring âbring your own chipâ arrangements requiring new customers to supply hardware. Oracle has not released a statement on the layoffs.