Workday Cuts 1,750 Jobs in Strategic Shift Towards AI Innovation

Workday lays off 1,750 employees in a 'difficult but necessary' decision

Workday has announced plans to cut 1,750 jobs, impacting around 8.5% of its workforce. The company stated that the move is aimed at prioritising investments in artificial intelligence and global expansion.American human resources management company Workday has announced plans to lay off as many as 1,750 of its employees. Those impacted by the mass layoff make up around 8.5 per cent of the company's total workforce. In a memo on Wednesday, CEO Carl Eschenbach said the "difficult, but necessary" decision would enable Workday to prioritise investments in artificial intelligence (AI) and expand its global presence. "I realise this is tough news, and it affects all of us -- the Workmates who are leaving and those who'll continue with us. I encourage you to work from home or head home if you're already in the office," Eschenbach was quoted as saying in his note by USA Today. The impacted employees will be notified shortly, the CEO said through the memo. After the announcement of the mass layoffs, Workday's shares jumped by more than 4 per cent in premarket trading. Also Read : Ozzy Osbourne says 'I can't walk' ahead of final concert with Black Sabbath According to USA Today, Eschenbach announced that the exit formalities will vary depending on the area, as some local requirements call for a consultation period. According to Eschenbach's memo, the termination benefits for US-based employees would include at least 12 weeks' worth of severance pay, with tenure being the deciding factor in who qualifies for additional weeks. The memo stated that affected employees would also receive stock unit grants, career services, benefits support and immigration support. Employees in other regions would be offered similar packages to their US counterparts, provided local regulations allow it, Eschenbach noted. Workday's total workforce included more than 20,400 employees by late October, according to Bloomberg. It was reportedly one of the few large-scale tech companies that remained untouched by mass layoffs in recent years. Also Read : Will Donald Trump's push to halt EV charger rollout hit Elon Musk's Tesla hard? Some reports suggest that the company also has plans to close some of its office spaces. The move will reportedly be part of Workday's cost-cutting measures. 1. What termination benefits has Workday announced for its laid-off employees? As per CEO Carl Eschenbach's memo, US-based employees will receive at least 12 weeks of severance pay, with additional weeks determined by their tenure. 2. Will employees outside the US receive the same benefits? Employees outside the US will be offered similar packages, provided local regulations permit, Eschenbach stated.

Workday to cut 1,750 jobs in AI push

Carl Eschenbach, CEO of Workday speaks on CNBC's Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 23, 2025. Workday said on Wednesday it will cut around 1,750 jobs, or 8.5% of its current workforce, as the human capital management firm invests heavily in artificial intelligence to counter a softer macroeconomic environment. Shares of the California-based company jumped over 4% in premarket trading. Workday CEO Carl Eschenbach said the layoffs are necessary to prioritize investments such as artificial intelligence, while also freeing up resources to expand the company's presence in different countries. The layoffs come at a time when the human capital management industry has grappled with slower spending by enterprise clients as high interest rates have pressured tech budgets. Workday expects to incur around $230 million to $270 million in charges connected to the cost reduction plan, of which, around $60 million to $70 million is expected to be recognized in the fourth quarter. As of Jan. 31 last year, the company had around 18,800 employees. Workday faces stiff competition from other players in a crowded industry as firms consolidate their position through acquisitions to take market share. Last month, Paychex said it will acquire Paycor for $4.1 billion in cash, while Automatic Data Processing acquired management services provider WorkForce Software for around $1.2 billion in cash in October. Workday also said it expects its fiscal fourth quarter and full-year financial results to be in line with or above its prior forecast. The company forecast annual subscription revenue of $7.70 billion in November while it expects fourth-quarter subscription revenue to be $2.03 billion - in line with analysts expectations, as per data compiled by LSEG. Workday also said it expects to close certain office spaces that it owns and the actions associated with the cost reduction plans should be completed by the second quarter of fiscal 2026.

Workday lays off 1,750 employees, citing demand for AI

It's the latest in a series of similar decisions by big tech companies. Workday, the HR and finance management company, is the latest tech giant to lay off a mass of employees in the name of AI. In a Wednesday announcement titled "Changes to Position Workday for the Future," the organization shared that it's eliminating 1,750 employees, about 8.5 percent of its workforce. The public statement from CEO Carl Eschenbach was initially emailed to employees. Within a series of paragraphs in which Eschenbach acted really torn up about choosing AI over people, he summed up this trend pretty clearly: "Companies everywhere are reimagining how work gets done, and the increasing demand for AI has the potential to drive a new era of growth for Workday." Eschenbach later adds that Workday will be "prioritizing innovation investments like AI and platform development, and rigorously evaluating the ROI of others across the board." Though, he claims the company will also "hire in key strategic areas and locations" this year. According to the announcement, Workday tried to meet with as many impacted employees as possible on Wednesday, so some individuals might not immediately know their fate. US-based employees will receive at least 12 weeks of pay, while employees in other countries (with potentially stronger protections for workers) will receive benefits based on local regulations.

Workday lays off 1,760 employees to focus on AI and platform innovation - SiliconANGLE

Workday lays off 1,760 employees to focus on AI and platform innovation Enterprise resource planning software company Workday Inc. announced today that it would cut around 8.5%, or 1,760 jobs, from its workforce as part of a push for growth and increasing investments in artificial intelligence. The news of the layoffs was revealed in a memo to employees that was published as part of a filing with the U.S. Securities and Exchange Commission. In the memo, Chief Executive Officer Carl Eschenbach said that Workday was at a "pivotal moment" where "companies everywhere are reimagining how work gets done, and the increasing demand for AI has the potential to drive a new era of growth." "This creates a massive opportunity for us, but we need to make some changes to better align our resources with our customers' evolving needs," Eschenbach added. "This means investing strategically, helping teams work better together, bringing innovations to market faster and making it easier for our customers and partners to work with us." Unfortunately, for approximately 1,750 Workday employees, the "massive opportunity" for Workday includes them being shown the door. U.S. employees will be offered a minimum of 12 weeks of pay and additional weeks based on tenure, along with additional vesting of restricted stock unit grants, career services, benefits support, and immigration support. The layoffs were not the only thing detailed in the memo, with Eschenbach also detailing strategic changes throughout the company. The changes include a sharper focus on strategic investments, with continued hiring in key areas and a commitment to AI and platform innovation. Workday is also evaluating the return on investment across all initiatives to ensure resources are allocated effectively. Additionally, Workday is re-engineering processes to enable faster decision-making and innovation while clarifying roles and responsibilities for greater alignment. It is also expanding its global footprint by investing in strategic locations with strong talent to better serve customers worldwide. According to the Associated Press, Workday expects the layoffs and workplace adjustments related to the restructuring plan will incur costs of between $230 million and $270 million, primarily in severance payments. Workday joins other companies that have announced layoffs recently, including Salesforce Inc.'s announcement that it will let go of over 1,000 workers on Feb. 4.

Tech giant Workday lays off 1,750 employees in shift to AI

CEO Carl Eschenbach said the Bay Area-based software firm will be "prioritizing innovation investments like AI and platform development." Workday, the tech giant that sells workforce management software, is laying off about 1,750 employees, CEO Carl Eschenbach said in a Wednesday email that pointed to "increasing demand" for artificial intelligence as having "the potential to drive a new era of growth" for the company. The layoffs will affect 8.5 percent of the company's staff around the world. In the memo, Eschenbach said the Bay Area-based firm will be "prioritizing innovation investments like AI and platform development." Eschenbach urged employees to work from home on Wednesday and said that those laid off in the United States will be offered a minimum of 12 weeks pay with additional weeks determined by tenure. Workday said it intends to continue hiring in "key strategic areas" throughout its fiscal year and plans to exit some office spaces, according to an SEC filing Wednesday. The Washington Post is a Workday client. The cuts are the latest in a wave of layoffs sweeping the tech sector in recent years, with leaders at major companies including Amazon, Google, Meta and Intel also turning to staff reductions, sobering an industry where workers could once rely on their pick of jobs. Amazon founder Jeff Bezos owns The Washington Post. Workday's move echoes those of other corporations that have justified cutting employees to create room for AI. Meta, after cutting thousands of jobs in 2022 and 2023, has recruited talent to boost its AI work and efforts to build the metaverse, The Post reported. Last year, Google cut hundreds of engineering and hardware workers, aiming to focus on AI. Dropbox CEO Drew Houston last year used similar reasoning to defend layoffs telling the Verge that they made "a really tough decision to let go of a lot of people and then make room for the investments in AI." Workday, which was founded in 2005, has a market capitalization of $73 billion. In a recent filing, Workday said total revenue for the third quarter was $2.16 billion, an increase of 15.8 percent from the same period last year. CFO Zane Rowe said the company expects 17 percent growth in subscription revenue during the 2025 fiscal year. Shares for the company were up more than 6 percent at market close on Wednesday.

Workday erases 8.5% of workforce because of...AI

That's 1,750 positions about to join the employment queue and it's only February Workday is erasing 8.5 percent of its personnel under a restructuring scheme because... AI. In a classic piece of corporate speak, the company said in an SEC filing that the job cuts are "intended to prioritize its investments and continue advancing Workday's ongoing focus on durable growth." This will "result in the elimination of approximately 1,750 positions, or 8.5 percent of Workday's current workforce. Workday expects to continue to hire in key strategic areas and locations throughout its fiscal year ending January 31, 2026. In connection with the Plan, Workday expects to exit certain owned office space." The irony of the real estate consolidation might not be lost on Reg readers who remember that Workday was among the first wave of tech companies that called for employees to haul their asses on-site because the CEO thought they'd have had enough of their families when forced to work at home during the pandemic. The job cuts are despite Workday confirming there are no surprises contained in its profit and loss accounts for the most recent full fiscal year 2025 ended January 31, which are "inline with or above its guidance." The results are scheduled to be published on February 25. Neither was there a hint of any challenges in Workday's financial results for the nine months ended October 31, when revenues were up to $5.67 billion from $4.84 billion in the prior year period, and next profit was $432 million up from $193 million. The reason for the mini cull is AI. In a note to staff, Workday CEO Carl Eschenbach said "The environment we're operating in today demands a new approach, particularly given our size and scale. We have to adapt by thinking differently, acting boldly, and investing strategically. "Our journey at Workday has always been about challenging the status quo, embracing change, and putting our customers at the heart of everything we do. As we start our new fiscal year, we're at a pivotal moment. Companies everywhere are reimagining how work gets done, and the increasing demand for AI has the potential to drive a new era of growth for Workday. The restructuring is to "align our resources with our customers' evolving needs. This means investing strategically, helping teams work better together, bringing innovations to market faster, and making it easier for our customers and partners to work with us." Eschenbach said he is to "start meeting" with "affected employees shortly, with the goal of reaching as many as possible today, subject to local requirements where a consultation period is required." By freeing up resources, the CEO said he is going to concentrate on "prioritizing innovation investments like AI and platform development, and rigorously evaluating the ROI of others across the board." He said Workday is also "evolving our processes to empower faster decision-making and to accelerate innovation." He said the changes will also ensure "everyone has a clear understanding of their contributions to our shared success." And Workday will expand its global footprint with hiring in "strategic locations with strong talent to better serve our customers worldwide." "To those who are leaving us, I want to express my sincere gratitude for your hard work, dedication, and the valuable contributions you've made to Workday's success. We are committed to providing support and resources to help you navigate this transition. "Affected employees in the US will be offered a minimum of 12 weeks of pay, with additional weeks based on tenure. In addition, they will be offered additional vesting of restricted stock unit grants, career services, benefits support, and immigration support. Outside the US, affected employees will be offered packages based on local standards, which will be aligned with US packages where possible." ®

Workday shifts focus to AI, lays off 8.5pc of global workforce

Workday will be announcing a new Dublin location to bring all its employees under a building, the company spokesperson told outlets. Workday is laying off approximately 1,750 employees or 8.5pc of its global workforce as the American enterprise software company looks to open itself up the increasing demand for artificial intelligence (AI). In an email addressed to employees yesterday (5 February), Workday CEO Carl Eschenbach said that the company needs to make these changes to "better align" its resources with its customers' "evolving needs" through 'strategic investments' in order to tap into new growth opportunities presented by AI. According to Workday's US Securities and Exchange Commission filing, the company also announced plans to exist some of its office spaces and noted that the restructuring will cost the company approximately $230m to $270m. Eschenbach explained the reasons behind the mass layoffs and said that the company is prioritising investments into AI and platform development, "evolving" its processes to "accelerate innovation," while "clarifying" employee roles. According to the email, the company has already begun reaching out to the affected employees. Although, Workday, which has around 2,000 employees in Dublin - its European headquarters - said it will continue to hire in "key strategic areas and locations" throughout the 2026 financial year, while also looking to expand its global footprint. Meanwhile, in a statement to news outlets, a Workday spokesperson said: "We are close to announcing a new location in Dublin city centre that will bring all our employees together in one building, enabling greater collaboration and creativity". This announcement comes less than three years after Workday announced plans to create 1,000 new jobs over 2023 and 2024 in Dublin, a year after creating 400 Irish jobs in 2021. In 2023, Workday lodged plans with the Dublin City Council to increase its workforce capacity in the city to 3,500. The US-based firm has provided enterprise cloud applications for finance, HR and planning organisations since its founding in 2005. It came to Ireland in 2008 and established its European headquarters in Dublin in 2015. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.