Workday Shifts Focus to AI and Announces Workforce Reductions

Workday, a notable American enterprise software company, is set to lay off around 1,750 employees, which equates to 8.5% of its global workforce. This significant move comes as the company pivots to meet the rising demand for artificial intelligence (AI) solutions. The decision was communicated by Workday's CEO, Carl Eschenbach, in an email addressing employees on February 5.

Eschenbach stated that these layoffs are a necessary step to align resources with the evolving needs of customers. He emphasized the need for 'strategic investments' to seize new growth opportunities presented by AI. As part of this transition, Workday plans to consolidate some of its office spaces, projecting that the restructuring will cost between $230 million and $270 million.

The company has begun contacting those employees affected by the layoffs. Despite these job cuts, Workday is still looking to hire in 'key strategic areas and locations' during the financial year 2026. Workday currently employs about 2,000 people in Dublin, which serves as its European headquarters, and aims to continue expanding its global presence.

Additionally, a company spokesperson revealed plans to announce a new location in Dublin’s city center aimed at bringing all employees into one building. This initiative is expected to enhance collaboration and creativity within the workforce.

Workday’s previous plan to secure a larger office space capable of accommodating 3,500 employees in Dublin was set in motion in 2023 but was halted in 2024. This layoff announcement comes shortly after Workday had expressed intentions to create 1,000 new jobs in Dublin over 2023 and 2024, as well as establishing 400 jobs in 2021. Since its inception in 2005, Workday has focused on delivering enterprise cloud applications for finance, HR, and planning. The company has been operating in Ireland since 2008 and set up its European headquarters in Dublin in 2015.

Workday, AI, layoffs