Workday, the finance and human resources software company, has decided to trim its workforce by 8.5 per cent. That means 1,750 employees will be rendered jobless.
This is part of the company’s strategy to focus on expanding its presence worldwide and also prioritizing the growing demand for artificial intelligence (AI). The company is determined to make maximum use of its potential and leverage the strong foundation that it already has.
The company reportedly had a workforce strength of well over 20,000 in October last year. Those being laid off will receive an official communication soon.
Carl Eschenbach, CEO, Workday, has reportedly called the downsizing decision a tough one, but one that was badly needed. The company hopes the move will result in faster decision-making, more innovation and accountability following clear laying out of responsibilities.
While acknowledging with gratitude the valuable contribution made by the impacted employees, Eschenbach also assured them of relevant support through this difficult transition.
Employees in the US are likely to receive a minimum of 12 weeks’ salary based on their tenure. In addition there would be benefits in the form of additional vesting of restricted stock units, career services, benefits support as well as assistance with immigration.
These layoffs do not mean that Workday has stopped hiring altogether. It will continue to hire in some locations. The company plans to focus and invest more on strategic locations where quality talent is available.
