Workday, a human resources and financial management software company, revealed in a Form 8-K filed with the U.S. Securities and Exchange Commission (SEC) that it is cutting its workforce by 2.5%, primarily within its Product and Technology team.
“On September 29, 2026, certain functions within Workday announced reorganizations designed to better align team structures with Workday’s strategic growth priorities,” according to the filing. “These actions include a reduction of approximately 2.5% of Workday’s current workforce, primarily within Workday’s Product and Technology team, and select leased office space reductions. Workday plans to continue to hire in key strategic areas and locations throughout its fiscal 2027.”
The job cuts will affect about 525 employees and cost the company $65 million to $85 million. Of that amount, $55 million to $70 million is expected to be incurred during the third quarter of fiscal 2027, with another $10 million recognized during the fourth quarter.
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“These charges consist of approximately $40 million to $55 million of future cash expenditures related to severance payments, employee benefits, and related costs and approximately $10 million in non-cash charges for stock-based compensation,” the filing reads. “The charges also consist of approximately $15 million in non-cash charges related to the impairment of certain leased office space.”
Workday is expected to release its third-quarter results on Nov. 27. This is the second round of layoffs the company has conducted this year. In early February, Workday laid off 2% of its employees, primarily within its Global Customer Operations team. A week after those layoffs, then-CEO Carl Eschenbach left his post. He was succeeded by Workday co-founder and executive chair Aneel Bhusri, who had held the top job three times previously.
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The latest layoffs come about two months after Workday announced the launch of Workday Learning, powered by Sana. The platform is designed to help enterprises accelerate workforce upskilling and AI readiness. With Workday Learning, employees get a personal tutor that coaches them through complex material, breaks down difficult concepts into practical guidance and recommends what to learn next. Administrators, meanwhile, get AI-powered automation for assignments, campaigns and other key learning tasks.
It was also reported last month that private equity firm Silver Lake is in talks to acquire Workday, a human resources and financial management software company, in what could become one of the largest software buyouts on record. The deal could mark a turning point for the software sector amid growing pressure from the rise of artificial intelligence.