Workday Lays Off 1,750 Workers As Part Of AI Pivot

PLEASANTON, CA — Workday, the Pleasanton-based financial and human capital management software company, will eliminate 1,750 positions, or 8.5% of its workforce.

In an open letter sent to employees, CEO Carl Eschenbach wrote that the cuts are due to a shift toward utilizing artificial intelligence.

“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,” he said. “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.”

The company will look to invest more money in areas like AI and platform development, and said it will continue to hire people with expertise in that area. Eschenbach also said the company is looking to enable “faster decision-making” and an expanded global presence.

Affected employees in the U.S. will receive a minimum of 12 weeks pay, with more offered depending on tenure. Employees will also receive additional vesting of restricted stock unit grants, career services, benefits support, and immigration support. Employees outside the U.S. will be offered packages based on local standards that are aligned with the U.S. packages where possible.

“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,” Eschenbach said.

The Workday news comes one day after Salesforce reportedly cut more than 1,000 positions, also in favor of AI. Microsoft, Google, Meta, Amazon have also announced layoffs in the past month.

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