Workday Lays Off 1,750 Employees Amid AI Investment Shift

Published on IT Referral Jobs | February 8, 2025

In a major workforce restructuring move, Workday has announced plans to lay off 1,750 employees, roughly 8.5% of its total workforce. The decision is part of the company’s broader strategy to shift focus towards AI-driven solutions and global expansion.

This development comes amid a wave of layoffs across the tech sector, as companies adjust to economic pressures and evolving industry demands.

Why the Layoffs?

According to a company-wide memo from CEO Carl Eschenbach, these layoffs are aimed at optimizing Workday’s resources for sustained growth in artificial intelligence (AI) and cloud-based solutions.

“As we start our new fiscal year, we’re at a pivotal moment,” Eschenbach wrote. “Companies everywhere are reimagining how work gets done, and the increasing demand for AI has the potential to drive a new era of growth for Workday.”

While the layoffs affect several departments, the company remains committed to hiring in AI, product development, and global sales teams to accelerate innovation.

Workday also announced plans to exit some office spaces as part of cost-cutting efforts, though details on specific locations have not been disclosed.

Severance & Support for Affected Employees

Workday is offering comprehensive severance packages to impacted employees, including:

• Minimum of 12 weeks’ severance pay, with additional compensation based on tenure.
• Equity stock unit grants and continued healthcare benefits.
• Career support services, including resume assistance and networking opportunities.
• Immigration support for employees on work visas.

For employees outside the U.S., severance will be adjusted based on local labor laws.

Tech Industry Layoff Trend

Workday’s layoffs come amid broader tech industry downsizing, with Google, Intel, Salesforce, and Amazon also reducing headcounts due to economic shifts and increased automation.

Despite the layoffs, Workday’s stock rose over 4% in premarket trading following the announcement, indicating investor confidence in its AI-driven strategy.

What’s Next for Workday?

The company is set to release its full-year earnings report later this month, which will provide more insight into the financial impact of these layoffs and future hiring plans.

Job Referral & Career Opportunities

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Expert Insights: The Future of AI in Workplaces

Industry experts predict that AI adoption will continue to reshape workforce demands, with job roles evolving towards AI development, automation engineering, and machine learning.

Career Tip: If you’re transitioning from a non-AI role, consider upskilling with certifications in AI, cloud computing, or data science to stay competitive in the job market.