Workday to Cut Workforce by 8.5% as Competition and Spending Concerns Mount
Palo Alto, Calif., - Payroll processing giant Workday (WDAY) announced today that it will lay off approximately 1,750 employees, accounting for 8.5% of its current workforce. This move comes amid intensifying competition and uncertain economic conditions.
The company expects to incur charges of $230 million to $270 million related to the cost-cutting plan. Of this amount, approximately $60 million to $70 million is expected to be recognized in the fourth quarter.
Despite the job cuts, Workday's stock price rose over 3% in premarket trading on Wednesday. The company anticipates that its fiscal fourth-quarter and full-year financial results will meet or exceed previous forecasts.
The charges and actions related to the cost-reduction plan are expected to be completed by the second quarter of fiscal 2026.