Workday slashes nearly 10% of staff amid AI focus

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Workday has revealed plans to cut its workforce by 8.5%, equivalent to around 1,750 roles, as the company ramps up its AI focus.

In an announcement, CEO Carl Eschenbach said the current business environment requires a new approach, meaning the firm will reassess where its key focus areas lie.

“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,” Eschenbach

“This creates a massive opportunity for us, but we need to make some changes to better align our resources with our customers’ evolving needs,” he added.

While the company is eliminating certain positions, it will continue to hire strategic areas. It will prioritize innovation investments into AI and platform development whilst evaluating return on investment (ROI) in other areas of the firm.

Workday will also improve business processes to speed up decision-making, clarify the remit of certain roles, and expand the business’s global footprint.

“To those who are leaving us, I want to express my sincere gratitude for your hard work, dedication, and the valuable contributions you’ve made to Workday’s success. We are committed to providing support and resources to help you navigate this transition,” Eschenbach said.

AI fuelled job cuts are ramping up

This refocusing of investment as a reason for conducting layoffs is nothing new, with a pattern of similar job cuts having taken place over the last year or so as companies accelerate AI investments.

Dropbox announced a 16% cut to its workforce back in 2023, with the firm suggesting it would be able to more keenly focus on the development of AI products as a result.

More recently, Intuit made a similar move. The firm said it would lay off 1,800 staff ahead of a planned AI-fueled hiring spree over the following year.

Similarly, at the start of 2024, SAP announced it would be taking on a $2 billion restructuring program aimed at generative AI integration that would affect around 8,000 roles in total.