March 5, 2026, 2:20 p.m. ET Enterprise software company Oracle is planning thousands of job cuts as it faces a cash crunch from a massive AI data center expansion effort, Bloomberg News reported Thursday. Long a smaller contender in the cloud market, over the past year Oracle has emerged as a major player in the business of renting computing power thanks, in part, to its $300 billion deal with OpenAI. But investors have grown worried about how it would fund the data center expansion needed to serve OpenAI and other customers, including Elon Musk’s xAI and Meta. Larry Ellison’s Oracle has emerged as a major player in the business of renting computing power thanks, in part, to its $300 billion deal with OpenAI. Getty Images The software company, chaired by billionaire Larry Ellison, in February outlined plans to raise $45 billion to $50 billion this year in order to expand its cloud infrastructure, fueling investor concerns about its rising debt load. In December, the company said it expects capital expenditures for fiscal 2026 to be $15 billion higher than the $35 billion figure the company estimated during its first-quarter earnings call. The layoffs will impact divisions across Oracle and may be implemented as soon as this month, the Bloomberg report said, citing people familiar with the matter. Explore More