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Workday announced layoffs affecting about 2% of its workforce, mainly those in customer service roles.
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The company said it is reallocating resources while continuing to hire in strategic areas and locations.
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The cuts come as AI developments roil software investors, with Workday shares down about 34% from a year ago.
Workday is laying off approximately 400 employees as it needs to realign resources to meet top priorities.
In a securities filing Wednesday, the California-based payroll, talent management and expense processing software provider said the cuts represent about 2% of its total workforce and will mainly affect non-revenue-generating functions within its global customer service team. It said it plans to continue hiring in strategic areas and locations.
Workday did not mention artificial intelligence as a reason for the layoffs in its filing. However, recent AI developments have worsened investors’ prospects for many software companies.
Several major tech stocks took a hit this week, including Workday, Intuit and Salesforce, following the debut of Anthropic’s industry-specific Claude Cowork plugin.
A Workday spokesperson declined to comment beyond the filing.
Workday shares are down about 34% from a year ago. The company announced a larger round of layoffs last year, citing the need to invest more heavily in strategic areas such as AI. As of January 31, 2025, it had more than 20,400 employees.
Workday is also facing a class action lawsuit alleging it uses AI to discriminate against candidates based on race, age and disability. The company has said the case is baseless and denies the allegations.
Are you a current or former employee at Workday or another technology company whose shares have fallen significantly this year? Contact Sarah E. Needleman at [email protected] or via the encrypted messaging app Signal at 732-991-1100. Use a personal email address, a non-real Wi-Fi network, and a non-work device; here’s our guide to sharing information safely.
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