Workday to Lay Off 1,750, Emphasize AI Growth

Workday is laying off 1,750 employees, representing 8.5% of its workforce, as part of a restructuring plan to prioritize investments in artificial intelligence and expand its global presence. CEO Carl Eschenbach described the layoffs as a 'difficult, but necessary' decision aimed at aligning resources with customer needs and supporting durable growth. Affected employees in the U.S. will receive a minimum of 12 weeks of severance pay, with additional benefits based on tenure, while international packages will comply with local standards. The restructuring is expected to incur costs between $230 million and $270 million, with a portion recognized in the current fiscal quarter. Despite the layoffs, Workday plans to continue hiring in strategic areas, such as AI, and will exit certain office spaces as part of the plan. This move aligns with broader tech industry trends of layoffs and restructuring to adapt to changing market demands and technological advancements.