Workday layoffs: 1,750 positions to be cut, packages based on local standards to be provided

Meetings with the affected employees have commenced as of 5 February, as shared by CEO Carl Eschenbach in a company-wide email.

In an email to employees of Workday (called 'Workmates') on 5 February 2025, CEO Carl Eschenbach has announced the "difficult, but necessary, decision" to eliminate approximately 1,750 positions, or 8.5% of the current workforce.

This, he wrote, is owing to the need to make some changes to better align the company's resources with customers' evolving needs, i.e. investing strategically, helping teams work better together, bringing innovations to market faster, and making it easier for customers and partners to work with Workday.

As such, meetings with the affected employees have commenced, with the goal of reaching as many as possible on the date of the announcement, subject to local requirements where a consultation period is required.

Admitting that this was tough news affecting everyone, not just those impacted, the CEO encouraged all staff to work from home or head home, if they were already in the office when the announcement was made.

For departing colleagues, Workday has announced the following forms of support:

1. Affected employees in the US will be offered a minimum of 12 weeks of pay, with additional weeks based on tenure.
2. In addition, US employees will be offered additional vesting of restricted stock unit grants, career services, benefits support, and immigration support.
3. Outside the US, affected employees will be offered packages based on local standards, which will be aligned with US packages, where possible.

As part of the new operating model, Eschenbach announced the following immediate changes that will continue to evolve through FY 2026:

1. Prioritising investments: While some positions are being eliminated, hiring will continue in key strategic areas and locations throughout FY26. Innovation investments will be prioritised in areas like AI and platform development, and rigorously evaluating the ROI of others across the board.
2. Re-engineering processes: Process will be evolved to empower faster decision-making and to accelerate innovation.
3. Clarifying roles and responsibilities: Everyone will be provided a clear understanding of their contributions to the shared success.
4. Expanding the global footprint: Investments will be made in strategic locations with strong talent to better serve customers worldwide.

Further information on the hiring and location strategy investments are likely to be shared by the CEO in the next company meeting, but he did point out the potential of AI as being one of the big opportunities.

ALSO READ: Life after layoffs: Navigating the common issues businesses face after headcount reductions

Lead image / Workday newsroom (featuring the headquarters lobby)