Technology giant Oracle may take drastic measures to find the funds needed to expand its AI data centers. According to the TD Cowen analytical center, the company is considering laying off 20,000 to 30,000 employees and selling its Cerner healthcare software division. These steps are expected to help save between $8 billion and $10 billion in the company's budget. Reports cio.com.
Financial difficulties arose after US banks refused to lend to Oracle projects. Investors are skeptical about the company's ability to execute its $156 billion infrastructure plans. As a result of banks tightening credit terms and raising interest rates, borrowing costs for Oracle have become significantly more expensive. This, in turn, has slowed down the process of building new data centers.
To resolve the situation, Oracle is implementing measures such as requiring a 40 percent advance payment from customers and introducing a "bring your own chips" (BYOC) strategy. However, these methods also carry inherent risks. There are concerns that mass layoffs could negatively impact the company's technical capabilities. So far, Oracle management has not provided an official comment on this information.
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