Oracle's $300 billion OpenAI partnership announced last year strains finances

Business Apr 30, 2026

Oracle's massive $300 billion partnership with OpenAI, announced last year, seemed like a power move at first; stocks shot up 43% and there were big plans for new data centers across the US.
But fast forward to now, and all that spending (including leasing extra data centers) has left Oracle in serious financial trouble.

Oracle facing 20,000 to 30,000 layoffs

With expansion projects in Texas and Wisconsin, Oracle's debt has soared past $100 billion, causing its stock to drop by half and raising worries about credit downgrades.
To cope, the company has already cut 10,000 jobs and is expected to lay off 20,000 to 30,000.
That's nearly one in five employees facing layoffs—the biggest shakeup Oracle has ever seen.