Workday, a leading provider of workforce management software, is cutting approximately 1,750 employees, according to CEO Carl Eschenbach’s recent email. The move comes as the company sees increasing demand for artificial intelligence (AI) and its potential to drive growth.
Despite this layoff, Workday plans to continue hiring in strategic areas and exit underutilized office spaces. This strategy aims to optimize resources and focus on key investments. The company has reported a 15.8% increase in revenue compared to the same period last year, with total revenue reaching $2.16 billion.
CEO Carl Eschenbach believes that AI holds significant potential for Workday’s growth, driving a new era of success. The layoffs are not an isolated incident; other tech giants like Amazon, Google, and Meta have also reduced staff in recent years to prioritize AI development.
Despite the challenges, Workday remains optimistic about its future prospects, with CFO Zane Rowe predicting 17% growth in subscription revenue for the 2025 fiscal year. The company’s market capitalization stands at $73 billion, and shares surged more than 6% following the announcement.
Source: https://www.washingtonpost.com/business/2025/02/06/workday-layoffs-ai