Workday cut 500 technology employees and lowered its earnings outlook.
In a securities filing on Tuesday 29 September, Workday said it would cut about 2.5% of its workforce, roughly 500 employees, mainly from its product and technology team.
The move would "better align team structures with Workday's strategic growth priorities".
Workday says it will continue hiring in strategic areas and locations throughout its 2027 financial year. The cuts will cost $65 million to $85 million, with most of that expense falling in the third quarter of its 2027 financial year.
Business Insider reported that Workday lowered its earnings outlook for its third financial quarter because of the cost of the job cuts. Workday's shares are down about 12% this year. This is its second round of layoffs in 2026 after it cut about 400 employees in February. Former CEO Carl Eschenbach left shortly afterward and cofounder Aneel Bhusri returned as CEO.
On the August earnings call, Bhusri said, "Last quarter, I told you I hadn't met a single customer looking to replace Workday with something they're building internally or buying from a startup. One quarter later, that hasn't changed."
If the company supplying your human resources or finance software keeps cutting the product teams that build it, what do you ask when renewing your contract?
Sources
Our file on Workday
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SAP agreed to buy HR startup TechWolf. Rivals Workday and ServiceNow had backed it.
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Workday said demand for basic AI skills peaked in January. Then it fell 25%.
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