Oracle may slash up to 30k jobs to fund AI data-centers as US banks retreat

3 days ago

Oracle is considering cutting 20,000 to 30,000 jobs to free up $8 billion to $10 billion in cash flow.
Oracle is weighing the sale of its healthcare software unit, Cerner, acquired for $28.3 billion in 2022.
US banks have pulled back from financing Oracle’s AI data-center expansion, increasing borrowing costs.
Oracle’s infrastructure commitments require $156 billion in capital expenditure, creating financing challenges.
Asian banks are stepping in to provide financing at premium rates, offering an alternative for Oracle’s international expansion.
Oracle is exploring strategies like requiring 40% upfront deposits from customers and 'bring your own chip' (BYOC) arrangements to reduce capital needs.
OpenAI has shifted its capacity needs to Microsoft and Amazon due to Oracle’s financing struggles.
Industry analysts differ on the severity of Oracle’s situation, with some urging enterprises to treat Oracle’s cloud buildout as a shared infrastructure risk.
Oracle’s cloud infrastructure revenue grew 66% year over year, with GPU-related infrastructure up 177%, indicating underlying business strength.

Hasty Briefsbeta