Workday has announced that job cuts affecting 1,750 employees, about 8.5% of its workforce, are due to its restructuring plan led by CEO Carl Eschenbach. The organization is redirecting savings into developing its new Agent System of Record platform, aimed at managing AI agents securely within businesses. Despite the layoffs, Workday plans to hire for strategic roles to adapt to changing Market demands. The company reported strong financial results, with a revenue increase of 16.4% year-over-year, highlighting its focus on AI technology and the need for robust management of AI in enterprises. While AI is impacting jobs, Workday aims to innovate and capitalize on these changes.
Workday Announces Job Cuts Linked to AI Restructuring
Workday, a prominent HR and finance software company, has confirmed that its recent job cuts are indeed tied to the introduction of artificial intelligence (AI) and a significant restructuring initiative led by CEO Carl Eschenbach. The company has decided to lay off approximately 8.5 percent of its workforce, translating to around 1,750 positions, in an effort to save costs and allocate funds toward developing its new Agent System of Record platform. This news comes as Workday aims to adapt to a changing commercial climate that necessitates a fresh approach.
During a recent earnings call, Eschenbach emphasized the importance of reinvesting the savings from staffing reductions back into the organization’s technology and product development, particularly focusing on the Agent System of Record. This platform, which helps companies manage and onboard AI agents securely, has sparked renewed interest from clients and tech partners, including major companies like IBM, Google Cloud, and Salesforce.
The restructuring process, expected to cost up to $270 million, involves both cash expenditures and non-cash charges, but specific savings projections have not been disclosed. According to Workday, this investment is not only vital due to the demand but is also crucial for expanding their reach into the enterprise Market with their new AI solutions.
Workday’s newly launched role-based agents are designed to enhance operational efficiency across contracts, payroll, and financial auditing. Eschenbach pointed out that these agents are equipped with various configurable skills, distinguishing them from more generic task-based AI agents prevalent in the Market today.
As organizations increasingly look to implement AI, the potential for uncoordinated system integration and security risks arises. Workday’s Agent System of Record aims to mitigate these challenges by providing a central platform to monitor and manage both AI agents and human resources.
In terms of financial performance, Workday reported a revenue of $8.44 billion for fiscal 2025, marking a year-on-year growth of 16.4 percent. With this financial success, the company is positioning itself for future growth despite the recent workforce reductions.
Overall, while AI is changing the landscape of employment, its influence on job structures, as demonstrated by Workday, raises crucial discussions about workforce management and the future of corporate environments.
Tags: Workday, AI, job cuts, Agent System of Record, Carl Eschenbach, workforce restructuring, HR technology, financial performance, corporate strategy
What is the main focus of Workday’s recent updates?
Workday is focusing on improving its AI agent to enhance employee experiences, even as the company is undergoing staff cuts.
How will the AI agent help workers?
The AI agent is designed to make tasks easier and faster for employees, helping them find information and complete work more efficiently.
Are there concerns about job cuts related to the AI agent?
Yes, some workers are worried that the improvements in AI technology could lead to further job reductions in the future.
What does Workday say about job security?
Workday insists that while they are implementing AI, they believe the technology will support employees rather than replace them.
What should employees expect moving forward?
Employees should expect better tools and support through the new AI agent, which aims to enhance productivity and make their jobs easier.