Workday to Lay Off 8.5% of Workforce as Part of Restructuring Plan
Workday (WDAY) has announced plans to lay off approximately 1,750 employees, or 8.5% of its workforce, as part of a restructuring plan. The enterprise software company stated that the move aims to "continue advancing Workday's ongoing focus on durable growth."
Workday estimates it will incur expenses of $230 million to $270 million related to the plan. Of this amount, $60 million to $70 million is expected to be recognized in the fourth quarter of fiscal 2025, with the remaining recognized in the first quarter of fiscal 2026.
The company now anticipates a lower fourth-quarter GAAP operating margin of 22 to 23 percentage points compared to the Q4 non-GAAP operating margin. Additionally, the full-year GAAP operating margin is projected to be 21 percentage points lower than the full-year non-GAAP operating margin.
Despite the restructuring announcement, Workday shares have risen nearly 3% in recent trading sessions. However, they have declined approximately 9% over the last 12 months.