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.

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.

HR software giant Workday is following in the footsteps of Microsoft, Google, and Meta with a massive round of layoffs.

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.

Enterprise resource planning software company Workday Inc. announced today that it will cut around 8.5%, or 1,760 jobs, from its workforce as part of a push for growth and increasing investments in artificial intelligence.

Workday has announced plans to cut 1,750 jobs. The cuts amount to 8.5% of the Pleasanton-based HR and employee management platform’s total workforce. According to an open letter from Workday CEO Carl Eschenbach addressed to “Workmates,