Tech giant Oracle plans to lay off between 20,000 and 30,000 employees, a move expected to free up approximately USD 8–10 billion in cash flow, according to a TD Cowen research report.

Oracle is facing severe financial pressure as the expansion of its artificial intelligence data centers runs into financing difficulties, says a report by TD Cowen, the investment banking arm of TD Securities.

The company is considering measures such as large-scale layoffs and the sale of certain business units in response. In addition, Oracle is considering selling its healthcare software division Cerner, which it acquired in 2022 for US$ 28.3 billion.

TD Cowen also noted that at present, several U.S. banks have stopped providing loans for Oracle-related data center projects and have withdrawn from such lending. This pullback by banks has significantly increased Oracle’s borrowing costs. Since last September, the interest charged by lenders on Oracle’s data center projects has nearly doubled, pushing financing costs up to levels typically associated with non-investment-grade companies. TD Cowen added that while Asian banks appear relatively optimistic about Oracle, the stance of U.S. banks raises doubts about whether Oracle can secure support from other major banks.