Layoffs 2026: After Amazon, Oracle Employees Now Facing Uncertainty, 30,000 Jobs at Risk!
A new report makes a major claim about Oracle. According to investment bank TD Cowen, Oracle may cut up to 30,000 jobs under pressure to raise funds for its AI data center plans. The company may also consider selling its health tech unit, Cerner. Questions are mounting among investors regarding the financing of Oracle’s alleged massive AI infrastructure expansion.
TD Cowen’s research note (via CIO) states that Oracle needs a large data center network to support its $300 billion five-year contract with OpenAI. The bank estimates that approximately $156 billion in capital expenditure may be required for the OpenAI-related project alone. Investor concerns have increased since Oracle raised its capex estimate for 2026 by $15 billion to $50 billion last year.
According to the report, this year, both equity and debt investors are questioning how Oracle will finance such a large data center build-out. TD Cowen says this has also impacted Oracle’s credit default swap (CDS) spreads, which have increased rapidly in recent months. According to the bank, the price of Oracle’s five-year CDS tripled at the end of last year, which is considered an indicator of increased risk.
TD Cowen also states that Oracle is building data centers not only for OpenAI but also for clients like Meta and Nvidia. The company’s total commitment is reportedly up to $523 billion. According to the report, these projects may require approximately 3 million GPUs and other IT equipment, further increasing capital investment.
The bank claims that several US banks are backing away from financing Oracle’s data center projects. Meanwhile, private operators planning to lease data centers to Oracle are also facing difficulties in securing funding. This could impact Oracle’s build-out plans, which are based on a leasing model.
The report also states that Oracle issued $18 billion in bonds in September and has taken on debt from other sources. According to some estimates, the company may need to borrow approximately $25 billion annually to fund its plans. While Asian banks appear relatively comfortable with Oracle’s risk profile, concerns among US banks raise questions about the company’s ambitious AI infrastructure plans.
