Oracle is considering cutting 20,000 to 30,000 jobs and selling some of its activities as US banks pull back from financing the company’s AI data-center expansion, according to investment bank TD Cowen.
The job cuts would free up $8 billion to $10 billion in cash flow, TD Cowen said in a research report seen by CIO. Oracle is also weighing a sale of its health-care software unit, Cerner, which it acquired for $28.3 billion in 2022.
The measures come as multiple US banks have pulled back from Oracle-linked data-center project lending. “Both equity and debt investors have raised questions regarding Oracle’s ability to finance this buildout,” the report said.