Workday Cuts 8.5% of Workforce, Embraces AI-Driven Efficiency

Workday Inc., a leading provider of human capital management software, announced it is cutting approximately 8.5% of its workforce, impacting around 1,750 employees. CEO Carl Eschenbach cited the need for a new approach given the current economic climate and the company's scale. While aiming for increased efficiency and faster decision-making, Workday plans to invest in strategic AI initiatives and expand its international presence. This move, though surprising given Workday's previous avoidance of large-scale layoffs, may signal concerns about demand recovery or user growth. The restructuring is expected to yield cost savings between $230 million and $270 million by the end of April 2025.