Workday, the finance and human resources software company, has announced it will reduce its workforce by 8.5%, resulting in approximately 1,750 employees losing their jobs. This decision is part of the company’s strategy to expand its global presence while prioritizing the increasing demand for artificial intelligence (AI).
Workday aims to maximize its potential and leverage the strong foundation it already has in place.As of October last year, the company had a workforce of over 20,000 employees. Those affected by the layoffs will receive official communication soon.Carl Eschenbach, CEO of Workday, described the decision to downsize as a difficult yet necessary step. The company hopes that this move will lead to faster decision-making, increased innovation, and greater accountability through clearly defined responsibilities.
Eschenbach expressed gratitude for the valuable contributions of the impacted employees and assured them of support during this challenging transition. Employees in the US can expect a minimum severance package of 12 weeks’ salary, commensurate with their tenure.
Additionally, they will receive benefits that include vesting of restricted stock units, career services, benefits support, and assistance with immigration matters.It is important to note that while layoffs are occurring, Workday is not halting its hiring efforts entirely. The company plans to continue hiring in select locations, focusing on strategic areas where quality talent is available.
