This latest round of reductions follows a significant restructuring last February, when the human resources software provider cut roughly 8% of its staff. As of January 2025, Workday reported a total workforce of approximately 20,400 employees. While the company is scaling back in certain administrative areas, leadership indicated plans to continue hiring in strategic sectors throughout the current fiscal year, which began on February 1.
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Workday Trims 2% of Workforce in Strategic Growth Pivot
Workday, the enterprise software giant, is reducing its global headcount by approximately 2% as part of a reorganization aimed at prioritizing revenue-generating departments. The move, announced in a Wednesday filing with the Securities and Exchange Commission, primarily targets non-revenue roles within the company’s customer operations division.
Financial Impact and Margin Guidance
The restructuring will result in an estimated $135 million in charges, which the company expects to recognize in the fourth quarter of fiscal 2026. According to the report, these costs are broken down into several key components:
- Approximately $40 million for severance payments and employee benefits.
- An estimated $15 million in non-cash charges for stock-based compensation.
- A total anticipated impact of $135 million recognized in the fourth quarter.
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