Workday Cuts 1,750 Jobs to Fuel Growth Initiatives
Workday, a leading provider of human resources software, has announced plans to lay off approximately 1,750 employees, representing 8.5% of its workforce.
CEO Carl Eschenbach explained in a memo to employees that the layoffs are part of the company's ongoing growth strategy, particularly in artificial intelligence (AI) investments. "As we enter a new fiscal year, we are at a pivotal moment," Eschenbach wrote.
The move comes amid industry consolidation and layoffs in the tech sector. Workday aims to notify affected employees by Wednesday and will provide severance packages according to their tenure and local regulations.
It is estimated that the restructuring will cost Workday between $230 million and $270 million. Despite the layoffs, Workday remains optimistic about hiring in select locations and positions in the coming year.
The company also plans to vacate certain office spaces and invest in strategic locations to expand its global presence. Workday's most recent financial results showed a net income of $193 million and revenue of $2.16 billion in the third quarter of 2025. Shares for Workday experienced a rise of over 2.5% during midday trading on Wednesday.