Nearly 8.5% of staffers will be affected as Workday joins the ranks of Salesforce and Klarna in paving a new way of work.

CEO Carl Eschenbach said the Bay Area-based software firm will be “prioritizing innovation investments like AI and platform development.”

Workday is laying off 1,750 employees, essentially cutting down its total workforce by 8.5%, CEO Carl Eschenbach announced Wednesday.

Workday is cutting about 1,750 jobs, or 8.5% of its workforce. Workday CEO Carl Eschenbach said Wednesday the layoffs were necessary for ongoing growth efforts at the company — including a particular focus on artificial intelligence investments.

However, the layoffs will make Workday’s fourth quarter operating margin under Generally Accepted Accounting Principles (GAAP) 22 to 23 percentage points lower than its fourth quarter non-GAAP operating margin and its fiscal 2025 full-year GAAP operating margin 21 percentage points lower than its full-year non-GAAP operating margin.

Workday has announced plans to cut 1,750 jobs, impacting around 8.5% of its workforce. The company stated that the move is aimed at prioritising investments in artificial intelligence and global expansion.

Workday Inc. is cutting about 8.5% of its workforce, making it the latest technology company to begin 2025 with headcount reductions.