Workday Inc., a provider of business software solutions, has announced that it will be cutting 3% of its worldwide workforce due to the current challenging global economic environment. As of July, the company had a workforce of approximately 17,000 employees.
In a statement to its staff, Workday explained that the majority of the cuts will be taking place in the Product & Technology organization. The affected employees will be notified by the end of the day and will receive various benefits, including three months of pay and two additional weeks of pay for each year of service for US employees. Non-US employees will receive similar packages based on local policies.
Workday assured its employees that the cuts are not a result of over-hiring and that there are no plans for similar actions in the near future. In December, the company appointed Carl Eschenbach, a board member, partner at Sequoia Capital, and veteran industry executive, as co-CEO with co-founder and co-CEO Aneel Bhusri. Despite the recent workforce reduction, Workday’s revenue growth has remained steady at 19% to 22% over the past three years, with analysts estimating a 17% increase to $7.26 billion in fiscal 2024.
The tech industry is currently facing the fastest job cuts in at least two decades, with November being the highest month for cuts in the sector since the data was first recorded by consulting firm Challenger, Gray & Christmas Inc. in 2000. This trend follows announcements from major tech companies such as Amazon, Salesforce, Microsoft, and Alphabet, all of which have announced job cuts of varying magnitudes.
Workday shares dropped 39% last year, but have since gained 5.5% through Monday’s close. Despite the workforce reduction, Workday remains committed to providing its customers with the best possible business solutions and is confident in its future prospects.
