Finance and human resources software company Workday is laying off 1,750 employees, essentially cutting down its total workforce by 8.5%.
Workday CEO Carl Eschenbach said in a note to employees Wednesday that the mass layoffs were a “difficult, but necessary, decision” as the firm clears resources to help expand its global presence and prioritizes the demand for AI.
“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,” Eschenbach said.
Affected employees will be informed shortly, with Eschenbach adding the company aimed to meet with as many possible on Wednesday. He added that the termination process will vary by areas as some local requirements require a consultation period.
Workday had over 20,400 employees at the end of October, according to Bloomberg. The company had been one of the few major tech firms not taking part in mass layoffs in recent years, the news outlet reported.
Those in the U.S. will be offered at least 12 weeks of pay with tenure determining who is eligible for additional weeks, Eschenbach said. Other benefits include “additional vesting of restricted stock unit grants, career services, benefits support, and immigration support.”
Employees outside the U.S. will be offered similar packages as long as local standards allow it, Eschenbach added.
“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,” he said. “We are committed to providing support and resources to help you navigate this transition.”
In the Wednesday note, Eschenbach illustrated the other ways executives plan to reshape Workday, citing innovation investments from AI and platform development to analyzing return on investment opportunities across the firm.
“We have so much opportunity ahead of us, especially with the potential of AI, and we have a strong foundation to build upon,” he said. “While we have work ahead to realize our vision and full potential, today is about focusing on taking care of each other. I am proud and grateful for how you support one another, our customers and partners—particularly in moments like these.”
He also emphasized a need to expand Workday’s global footprint by “investing in strategic locations with strong talent.” Other goals Eschenbach listed included speeding decision-making, accelerating innovation and clarifying responsibilities.
This article originally appeared on USA TODAY: Workday layoffs: Over 1,700 employees affected, or 8.5% of workforce
