Oracle considers strategic moves amid massive funding challenge

Some observers warn that Oracle may be forced to pursue restructuring strategies to preserve financial flexibility, including potential job cuts or divestments of non-core assets, such as parts of its healthcare business. At the same time, the domestic expansion of Oracle Cloud Infrastructure (OCI) could face delays if U.S. financing proves constrained, even as international lenders remain more willing to support the company.

According to industry observer Elias, who has been outspoken in his criticism of Oracle, the company is reportedly considering cuts of 20,000 to 30,000 jobs and the sale of certain business units as U.S. banks pull back from financing its AI-driven data-center expansion. The proposed layoffs could free up $8–$10 billion in much-needed cash flow, helping to ease pressure on the balance sheet. Analysts at Barclays have warned that, without significant changes, Oracle could face cash shortfalls as early as the end of 2026. Among the potential divestments under consideration is the healthcare software division Cerner, acquired in 2022 for $28.3 billion.

The tech giant has announced plans to raise $45–$50 billion in 2026 through a combination of debt and equity to finance its cloud and AI infrastructure build-out, aimed at meeting growing demand from clients including OpenAI, Meta, NVIDIA, AMD, TikTok, and xAI.

Analysts caution that the scale of the funding could pressure Oracle’s stock if investors perceive dilution ahead of clear profit growth. Debt markets may also remain cautious, with higher borrowing costs and banks potentially pulling back from financing new projects, which could force Oracle to explore alternative funding options such as upfront customer deposits.

Should funding targets fall short or cash burn continue at current levels, the company’s strategic flexibility could be reduced, potentially prompting management to scale back investments or adjust its business priorities. While Oracle frames the capital raise as essential for long-term cloud and AI expansion, market skepticism and rising financing costs suggest the company may adopt a more cautious, defensive approach, emphasizing cost management and diversified funding strategies to maintain investor confidence.

Benedetta Zimone