Oracle Mulling Major Job Cuts, Cerner Sale Amid AI Datacenter Strain
The Register
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Contributed by: Drex DeFord
Summary
Oracle is reportedly contemplating significant job cuts and a potential sale of its health tech subsidiary, Cerner, in response to financial pressures stemming from a massive AI datacenter expansion. Investment bank TD Cowen estimates that Oracle might lay off up to 30,000 employees and faces a staggering $156 billion capital spending requirement to fulfill a five-year contract with OpenAI. This intense financial strain has raised alarm among investors, reflected by soaring credit default swap prices indicating increased perceived risk. For healthcare professionals, the potential divestiture of Cerner could disrupt innovation and investments in health technology at a time when robust digital health solutions are essential.
