Workday is doing another round of layoffs
Workday is laying off approximately 500 employees, representing 2.5% of its workforce, as part of a strategic realignment. This marks the company's second round of layoffs this year, following a leadership transition and a lowered fiscal third-quarter earnings forecast.
Why it matters
The move highlights ongoing instability in the enterprise software sector as companies adjust to shifting market demands and investor concerns regarding the impact of AI on software spending.
Aneel Bhusri took over as CEO in February. Fortune Workday is letting go about 500 employees, marking its second round of layoffs this year. The cuts mainly target the company's product and technology team as it realigns for growth. The software-as-a-service company also lowered its fiscal Q3 outlook. Workday is conducting layoffs for the second time this year, this time affecting around 500 workers. It also trimmed its fiscal third-quarter earnings forecast. The software-as-a-service giant said in a securities filing Tuesday that it's cutting approximately 2.5% of its workforce, mainly within its product and technology team, to "better align team structures with Workday's strategic growth priorities." The company, which had over 21,000 employees at the end of January, said it plans to continue hiring in strategic areas and locations throughout fiscal 2027. Workday shares are down about 12% year to date.
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