Workday Layoffs: 1,750 Employees Let Go Amid AI Shakeup : Tom M
by: Tom M
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**Summary of Workday Job Cuts and Context** Workday, a human resources software company, is laying off approximately 1,750 employees, which is about 8.5% of its workforce. This decision comes as the company shifts its focus toward investing in artificial intelligence (AI) to drive future growth. CEO Carl Eschenbach conveyed this difficult news in a memo to employees, acknowledging that these changes affect everyone at the company. In conjunction with the layoffs, Workday plans to downsize its office spaces, although specifics were not disclosed. Despite the cuts, the company expects to hire in certain areas over the next year, indicating a strategic realignment rather than a total contraction. This is part of a broader trend in the tech sector, where companies like Salesforce, Intel, Cisco, and Apple have also announced layoffs while simultaneously restructuring and investing in AI technologies. Workday anticipates incurring costs between $230 million and $270 million due to the restructuring, which includes severance for laid-off employees, who will receive at least 12 weeks of pay in the US. Notably, Workday's stock rose by 5.6% recently, suggesting market confidence amid these changes. As AI continues to reshape industries, the tech workforce is facing significant challenges and adjustments. **Additional Context** - The move towards AI is seen as essential for staying competitive in the tech industry. - The layoffs at Workday are part of a larger pattern of job cuts in the tech sector as companies adapt to new demands and technologies. - The full earnings report for Workday is expected later this month, which may provide further insight into the company's financial health and strategy moving forward. **Hashtags for SEO** #Workday #JobCuts #Layoffs #AIInvestment #TechIndustry #Restructuring #HumanResources #BusinessNews #SiliconValley #WorkplaceTrends #ArtificialIntelligence
Workday is cutting around 1,750 jobs as the company focuses on AI investments.
In a memo to employees, Workday CEO Carl Eschenbach said the layoffs, which equate to around 8.5% of the human resources software company’s workforce, were needed for ongoing growth efforts at the company.
“It Affects All of Us”
In a memo to employees, published on Wednesday in a securities filing, Eschenbach wrote: “As we start our new fiscal year, we’re at a pivotal moment. 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 added: “I realize this is tough news, and it affects all of us.”
The CEO encouraged employees to work from or head home for the day, AP reports.
Workday also disclosed that it expects to exit certain office space, but did not specify a timeline or which locations in particular would be affected.
Eschenbach’s memo reveals that the restructuring will aim to expand Workday’s global reach by “investing in strategic locations.”
Despite the staff cuts, the company said that it expects to continue hiring in certain areas over the next year.
Sector-Wide Layoffs
Employees at Workday are not the only ones affected by layoffs in the tech sector.
Salesforce Ben reported earlier this week that Salesforce was cutting more than 1,000 jobs in its first mass layoff procedure of 2025.
It came after the cloud giant announced that it would be undertaking a hiring spree of sales roles to meet the requirements of their primary AI offering, Agentforce.
According to an unnamed close source, Bloomberg reported that more than 1,000 people were affected by the latest round of layoffs.
Big Silicon Valley names including Intel, Cisco, and Apple have also seen cuts over the past year, with many tech companies restructuring as they grapple with staying competitive while boosting AI-related investments.
Workday predicts that it will incur between $230M and $270M in charges related to the restructuring plan. These include severance payments and employee benefits.
Eschenbach said that all those laid off in the United States will be offered 12 weeks of pay, with extras based on tenure, while those in other countries will get package offers based on local standards.
Credit: Google.
Workday is set to release its full 2025 fiscal year earnings results later this month.
Shares at the company have seen a 5.6% increase over the past five days, with a noticeable bump on Wednesday.
Final Thoughts
AI is reshaping the workplace, with “digital labor” seen by many in Silicon Valley as the next big thing to get behind.
However, people working in the tech industry appear to be the first ones to feel the bite of this workplace revolution.
The Workday layoffs are not the first staff cuts to be reported this year – and they’re unlikely to be the last.
The post Workday Layoffs: 1,750 Employees Let Go Amid AI Shakeup appeared first on Salesforce Ben.
February 06, 2025 at 04:09PM
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