Workday has confirmed it will lay off 1,750 employees, a reduction of 8.5% of its workforce.
This move comes as the company shifts its focus towards expanding its global footprint and investing in artificial intelligence (AI).
Reason Behind the Layoffs
CEO Carl Eschenbach shared the news with employees on Wednesday, calling the decision “necessary” as the company adapts to changing business priorities.
In his message, he said Workday is reallocating resources to drive innovation, particularly in AI, and expand into new global markets.
He said:
“This is a tough time for all of us.
“The decision affects our Workmates who are leaving, and those who will remain.”
He encouraged employees to take the rest of the day off, whether they were in the office or working from home.

Layoff Details and Support for Affected Employees
Workday, which had a workforce of over 20,400 employees at the end of October, plans to notify the affected employees as soon as possible.
Eschenbach said the layoffs will vary depending on local laws, which may require consultation periods in certain regions.
For employees in the US, the company is offering:
- At least 12 weeks of pay
- Additional weeks based on tenure
- Benefits support and career services
- Vesting of restricted stock units
- Immigration assistance
Similar packages will be provided to employees outside the U.S., as long as local regulations allow.
Focus on AI and Global Expansion
Eschenbach also outlined Workday’s future direction, emphasizing the company’s commitment to AI and expanding its global presence. He described AI as a key driver for future innovation, noting that Workday is focusing on platform development and improving its return on investment across various areas of the business.
The CEO also highlighted the need to strengthen the company’s international operations.
He said:
“We need to invest in strategic locations with strong talent.”
He stressed the importance of accelerating decision-making and innovation, as well as clarifying roles and responsibilities within the company.
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A Difficult Transition
Eschenbach expressed his gratitude to the employees leaving Workday, acknowledging their hard work and dedication.
He assured them that the company would provide support to help them navigate this transition.
He said:
“We are committed to providing resources to help you through this challenging time.”
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Looking Ahead
The layoffs signal a significant shift in Workday’s strategy, as the company doubles down on AI and focuses on expanding its global presence.
Although these changes are challenging, Eschenbach remains optimistic about the company’s future.
He said:
“We have so much opportunity ahead of us, especially with the potential of AI.
“Today is about taking care of each other and focusing on what’s next.”
As Workday looks to adapt to the changing business landscape, it will be crucial to see how the company balances its global expansion goals with maintaining employee morale and supporting those affected by the layoffs.