Workday will chop more than 600 jobs in the East Bay as it scouts for opportunities in artificial intelligence.

Workday is laying off 1,750 employees, essentially cutting down its total workforce by 8.5%, CEO Carl Eschenbach announced Wednesday.

CEO Carl Eschenbach said the Bay Area-based software firm will be “prioritizing innovation investments like AI and platform development.”

Workday is cutting about 1,750 jobs, or 8.5% of its workforce. Workday CEO Carl Eschenbach said Wednesday the layoffs were necessary for ongoing growth efforts at the company — including a particular focus on artificial intelligence investments.

However, the layoffs will make Workday’s fourth quarter operating margin under Generally Accepted Accounting Principles (GAAP) 22 to 23 percentage points lower than its fourth quarter non-GAAP operating margin and its fiscal 2025 full-year GAAP operating margin 21 percentage points lower than its full-year non-GAAP operating margin.

Workday Inc. is cutting about 8.5% of its workforce, making it the latest technology company to begin 2025 with headcount reductions.

Enterprise resource planning software company Workday Inc. announced today that it will cut around 8.5%, or 1,760 jobs, from its workforce as part of a push for growth and increasing investments in artificial intelligence.

CEO says the move ‘has the potential to drive a new era of growth for Workday,’ but there are concerns about customer service during the transition.

Workday has announced plans to cut 1,750 jobs. The cuts amount to 8.5% of the Pleasanton-based HR and employee management platform’s total workforce. According to an open letter from Workday CEO Carl Eschenbach addressed to “Workmates,