{"id":156105,"date":"2026-02-01T11:12:36","date_gmt":"2026-02-01T09:12:39","guid":{"rendered":"https:\/\/prohoster.info\/blog\/novosti-interneta\/czena-progressa-oracle-ne-nashla-deneg-na-novye-czod-i-mozhet-uvolit-do-30-tysyach-chelovek"},"modified":"2026-02-01T14:50:09","modified_gmt":"2026-02-01T12:50:09","slug":"czena-progressa-oracle-ne-nashla-deneg-na-novye-czod-i-mozhet-uvolit-do-30-tysyach-chelovek","status":"publish","type":"post","link":"https:\/\/prohoster.info\/en\/blog\/news\/czena-progressa-oracle-ne-nashla-deneg-na-novye-czod-i-mozhet-uvolit-do-30-tysyach-chelovek","title":{"rendered":"The cost of progress: Oracle has not found funding for new data centers and may lay off up to 30,000 employees.","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

Oracle does not rule out the possibility of reducing its workforce by 20,000 to 30,000 employees and selling part of its divisions, as American banks have refused to finance the company\u2019s program for expanding data centers for artificial intelligence systems. Reports say CIO<\/a> citing information from investment bank TD Cowen.<\/p>\n

\"The<\/p>\n

A large-scale workforce reduction could free up $8 billion to $10 billion in cash flow for Oracle. The company is also considering selling its Cerner division, which develops healthcare software \u2014 it acquired this division for $28.3 billion in 2022. Such measures may be taken by the tech giant because several American banks have refused to issue loans for data center projects. Problems have arisen due to the scale of Oracle\u2019s infrastructure commitments, which involve capital expenditures totaling $156 billion.<\/p>\n

Another negative factor is the downturn in the banking sector, which has caused Oracle\u2019s borrowing costs to double since last September. Such loans are issued to companies without investment-grade ratings. Oracle is already actively reaching out to the debt markets: in just two months, it raised $38 billion for projects in Texas and Wisconsin, as well as $20 billion for projects in New Mexico. This is just a small part of what the company needs, but banks are becoming increasingly reluctant to provide funding.<\/p>\n

An alternative solution may be Asian banks that are ready to fill the niche left by American lenders. Asian financial institutions are willing to lend at favorable rates in a bid to gain access to AI infrastructure development. For Oracle, this alternative opens a new path to international expansion, but it still does not solve the capacity issues in the U.S. Doubts arise about whether the company can actually increase revenue if it does not provide the expected data center capacities.<\/p>\n

\"The<\/p>\n

To reduce capital needs, Oracle has begun to change its strategy. It now requires new customers to provide a 40% upfront payment, essentially asking them to help finance the construction of its infrastructure. Another option is to allow clients to place their own equipment on the premises (Bring Your Own Chip - BYOC). Analysts see the most likely scenario as a combination of the latter option with workforce reductions: client equipment will alleviate capital expenditure concerns, while layoffs will improve cash flow. However, this also comes with risks: BYOC will require a review of existing contracts, and significant layoffs may impact the company's ability to execute its infrastructure development plans.<\/p>\n

The likely workforce reduction will be the largest for Oracle in recent years. At the end of last year, the company cut about 10,000 jobs as part of a restructuring plan worth $1.6 billion; it has also repeatedly reduced staff at Cerner \u2014 a significant wave occurred in 2023 due to issues with one of its contracts.<\/p>\n

Currently, Oracle has redirected its short-term needs to resources from Microsoft and Amazon, although just a few months ago, it leased about 5.2 GW of capacity for OpenAI's workloads. The company has significantly slowed down its data center procurement and reduced its presence on the lists of companies with long-term infrastructure development plans in the U.S. Private operators who would normally enter into large deals with Oracle are now holding back, \"until the market processes Oracle's current funding needs.\"<\/p>\n

Opinions among analysts on the company's future prospects are sharply divided. Some believe that purchasing services from Oracle has become risky. Others say that selling non-core assets will help the company consolidate its main services. From a business perspective, Oracle remains a strong player. In the last reporting period, it increased its revenue from cloud infrastructure by 66% and from infrastructure related to graphics processors and AI accelerators by 177%. But even optimists urge the company's clients to diversify their service providers.<\/p>\n

Source:<\/strong><\/p>\n