The stock decline also followed an analyst report suggesting the company may consider large-scale layoffs to boost cash flow, News.Az reports, citing CNBC.
Hyperscale cloud providers have been racing to build infrastructure to support artificial intelligence workloads, with global data center deal values reaching a record $61 billion in 2025. Several major technology firms have committed substantial capital as competition intensifies amid a broader funding surge.
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Oracle said on Sunday it plans to raise between $45 billion and $50 billion in gross cash proceeds during the 2026 calendar year to build additional capacity to meet contracted demand from its cloud customers. The company said the funding would be raised through a combination of debt and equity. Oracle’s customer base includes Nvidia, Meta, OpenAI, AMD, TikTok, and xAI.
Separately, a January 26 analyst note from TD Cowen said its “channel checks” indicated Oracle was considering laying off between 20,000 and 30,000 employees. Such moves could generate an estimated $8 billion to $10 billion in incremental free cash flow, according to the note.
The analysts said workforce reductions were one of several “paths forward” under consideration, alongside asset divestments aimed at reducing Oracle’s debt burden and the use of vendor financing.
Oracle has made aggressive investments in AI infrastructure in recent months. In September, the company raised $18 billion through a bond sale and announced a $300 billion deal with OpenAI.
However, investors have raised concerns about the scale of Oracle’s AI expansion plans and its increasing reliance on debt financing. Oracle shares are down roughly 50% from their peak in September and fell 11% in December after the company reported quarterly revenue that slightly missed expectations.
