HR software platform Workday is laying off 1,750 employees, or 8.5% of its workforce, it has been announced. According to a memo circulated on Wednesday, the layoffs are necessary for long-term growth, and will not interfere with the company’s plans to invest in new locations and employees over the course of the year.
The company predicts that it could incur up to $270 million in severance payments, employee benefits, and other costs, with all affected employees to be offered a minimum of 3 months of pay. Despite this, it still expects to make new hires over the course of the year, with the announcement signaling a strategic reshuffle as opposed to a harbinger of ill-fortune.
Mass layoffs continue to plague the tech sector, with Google, Meta, and Microsoft just some of the big players that have made similar announcements in recent weeks. With President Trump dismantling much of the apparatus set up to temper the rapid growth of AI, expect this trend to continue as more and more businesses turn to automation to reduce headcount.
