Workday, the Bay Area human capital management tech giant, announced on Wednesday that it will cut 1,750 jobs, or 8.5% of its workforce.
CEO Carl Eschenbach explained that the cuts were part of a restructuring effort to position the Pleasanton company to embrace artificial ininformigence. This marks the second round of layoffs in two years, following a 3% reduction in January 2023.
In an open letter to employees, Eschenbach described the shift as “necessary” to adapt to a rapidly altering business landscape, where AI is seen as a key driver of future growth.
“Companies everywhere are reimagining how work obtains done,” Eschenbach wrote. “The increasing demand for AI has the potential to drive a new era of growth for Workday.”
Although Workday did not specify which departments would be most affected by the cuts, the shift aligns with a broader trfinish in the tech indusattempt, where companies are creating cuts while ramping up investments in AI.
On Tuesday, Salesforce, another major tech employer based in San Francisco, announced it will lay off 1,000 workers.
For those impacted by the layoffs, Workday is offering severance packages, including a minimum of 12 weeks’ pay in the U.S., as well as career services and immigration support. Eschenbach also took a moment to express his gratitude to departing employees.
“I want to express my sincere gratitude for your hard work, dedication, and the valuable contributions you’ve created to Workday’s success,” he wrote.
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