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Workday cuts hundreds of jobs globally but denies overhiring

Cloud provider Workday has cut 525 global staff due to “challenging” worldwide economic conditions.

Company executives said the layoffs are not because of overhiring and the “majority” would hit its technology and product divisions.

However, the software company plans to continue hiring throughout the fiscal year 2024.

READ MORE: IBM ANNOUNCES 3,900 GLOBAL JOB CUTS BUT WILL CONTINUE HIRING IN ‘HIGHER GROWTH’ AREAS

Workday said: “We have decided to restructure and realign some teams across Workday, leading to the difficult decision to eliminate roles.”

As of July 2022, the firm, based in Pleasanton, California, employed around 17,000 people.

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A statement from the company said: “These moves are not the result of over-hiring.”

Workday said it planned to increase the size of its global workforce in fiscal 2024 and that “based on what we know today, we have no plans to take similar actions of this size in the foreseeable future.”

Workday has grown by about 38 percent increasing its staffing by more than 4,700 workers since early 2020.

US employees who have lost their jobs will get three months of severance pay plus two weeks’ salary for each year of employment.

READ MORE: SPOTIFY BECOMES THE LATEST TECH COMPANY TO ANNOUNCE JOB CUTS

Workday executives also assured immigration support and six months of voluntary medical benefits to those fired.

Severance packages for non-US workers would be “similar” to those granted to US employees.

Workday's three percent layoffs are less severe than those at most other big tech firms that have recently reduced staff.

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Salesforce was the first tech giant to announce layoffs this year by eliminating 8,000  jobs.

In mid-January, Microsoft implemented company-wide layoffs affecting 10,000 employees.

Amazon’s layoffs finally hit 18,000 roles amid wide fears within the organization, which led many to take voluntary severance last year.

Google parent Alphabet has also axed its workforce by about six percent.

Source: Bloomberg

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