New York (AP) – Workday cuts around 1,750 jobs, or 8.5% of its workforce.
In a Wednesday memo for employees, published in a securities application, Workday CEO Carl Eschenbach said that the dismissals were necessary for continuous growth agents at the company – including a special focus on investments in artificial information.
“While we are starting our new tax year, we are at a crucial moment,” wrote Eschenbach. “Companies are shown everywhere how the work is done, and the increasing demand for AI has the potential to stimulate a new era of growth for Workday.”
Workday wants to inform the majority of employees who are affected by the cutbacks. “I realize that this is heavy news, and it affects us all,” Eschenbach added – encouraging employees to work or go home for the day.
The maker of Human Resources software has also announced that it is expected to leave certain office space, but has not specified a timeline or which locations can be influenced. Nevertheless, the Memo Van Eschenbach notes that the restructuring will work to expand the global reach of Workday by ‘investing in strategic locations’.
And despite the current fired, the creator of Human Resources software says that it still expects to keep hiring at certain locations and positions in the following year.
Workday estimates that it will be between $ 230 million and $ 270 million in costs with regard to the restructuring plan – mainly in dismissal payments, employee benefits and other related costs. All dismissed employees in the US are offered at least 12 weeks of wages, with extra weeks based on a term of office, Eschenbach said on Wednesday, adding that affected employees in other countries will receive packages based on local standards.
The job loss on Workday arrive as the dismissals continue in the technology sector – including big names such as such as Intel” Cisco And Apple In the past year – in the midst of a wider wave of industrial consolidation. Many companies have become restructuring while struggling with how they can remain competitive with evolving consumer spending, while also increasing AI-related investments.
Workday is planning to release winning results for his full 2025 financial year later this month. In the third quarter, it booked a net income of $ 193 million in California, in California and a turnover of $ 2.16 billion and an increase in a net income of $ 132 million and a turnover of $ 2.09 billion in the period before.
Shares for Workday Reden by more than 2.5% against the afternoon trade on Wednesday.