Workday, a leading human capital management company, has announced layoffs of approximately 1,750 employees. This represents about 8.5% of their total staff. The decision comes as Workday strategically realigns its resources to focus on high-growth areas like Artificial Intelligence (AI) and platform development. CEO Carl Eschenbach explained the move in a memo to employees, citing the need for a new approach in the current market.
The company recognizes the evolving needs of its customers. Businesses are rethinking work processes. Furthermore, the rising demand for AI presents a significant opportunity for Workday. Therefore, strategic investments in innovation are crucial. These investments will streamline collaboration and accelerate product development. Ultimately, this makes it easier for customers and partners to interact with Workday.
- Reason for Workday Layoffs: Focus on AI and platform development.
- Number of Employees Affected: Approximately 1,750 (8.5% of the workforce).
- CEO’s Statement: “The environment we’re operating in today demands a new approach…”
- Company’s Strategy: Prioritize innovation investments in AI and platform development.
While Workday is reducing its workforce, the company plans to continue hiring in key strategic areas and locations throughout FY26. This demonstrates their commitment to future growth. They are carefully evaluating the return on investment (ROI) of various initiatives.
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