Workday cuts 1,750 employees out of their jobs to make room for AI

Another tech giant is laying off its employees in favor of AI. Workday, a tech firm of workforce management software, is laying off 1,750 employees, approximately 8.5% of the company’s global workforce.

CEO Carl Eschenbach cited increasing demand for AI as a key factor in the company’s decision to focus on investing in AI and platform development instead. So now, the company will continue hiring in strategic areas and reduce office space.

“I realize this is tough news, and it affects all of us—the Workmates who are leaving and those who’ll continue with us. I encourage you to work from home or head home, if you’re already in the office,” says Eschenbach in a memo to employees.

Though, despite that, Workday’s revenue saw another growth, with its stock rising by over 6% by the time the news broke out, per The Washington Post.

“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 continues.

There’s a growing list of tech firms cutting off jobs in favor of AI in recent times.

Not too long ago, Salesforce announced plans to eliminate 1,000 jobs while simultaneously creating new positions focused on AI products. Similarly, SAP also said that it’s restructuring the company’s inside and eliminating at least 8,000 roles as a part of its $2 billion investment in AI.

Intel also undertook substantial workforce reductions, laying off over 15,000 employees back in 2024 as part of a broader strategy to cut $10 billion in costs by 2025, which included restructuring its business to focus on essential operations and AI.