The technology giant Oracle is going through the most difficult phase in its history. The billion-dollar partnership with OpenAI now seems to be causing serious trouble for Oracle. According to the report of investment bank TD Cowen, the company may lay off 20,000 to 30,000 employees. This move could provide Oracle with about $8 to $10 billion of cash flow, which it desperately needs to expand its AI data centers.
Company trapped in debt trap
According to TD Cowen, the main reason for this big layoff is the $300 billion partnership with Sam Altman’s company OpenAI. To complete this deal, Oracle has to build huge infrastructure and data centers, in which money is flowing like water. The company wants to save about $8 to 10 billion by cutting staff so that AI projects can be funded.
The company will need about 30 lakh GPUs for data centers. The situation is such that Oracle has taken a new loan of $ 58 billion in just two months. Of this, $38 billion has been spent on data centers in Texas and Wisconsin, while $20 billion has been spent on a large campus in New Mexico. The total debt on Oracle has now reached more than $ 100 billion.
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The surprising thing is that even this $58 billion is only a part of the total requirement. Oracle’s market cap has fallen by more than half since the stock hit a high in September 2025. The company has suffered a market value loss of about $463 billion.
