Dado Ruvic/REUTERS
2026-02-05T17:31:51.762Z
Workday announced layoffs affecting about 2% of its workforce, mostly those in customer-service roles.
The company said it’s realigning resources while continuing to hire in strategic areas and locations.
The cuts come as AI developments rattle software investors, with Workday shares down about 34% from a year ago.
Workday is laying off about 400 employees, citing a need to realign its resources to meet its top priorities.
In a securities filing Wednesday, the California-based software provider for payroll, talent management, and expense processing said the cuts represent about 2% of its overall workforce and will primarily affect non-revenue-generating roles within its global customer service team. It said it plans to continue to hire in strategic areas and locations.
Workday didn’t cite artificial intelligence in its filing as a reason for the layoffs. Recent AI developments have, however, soured investors’ outlook for many software companies.
Several marquee tech stocks took a beating this week, including Workday, Intuit, and Salesforce, following the debut of Anthropic’s industry-specific Claude Cowork plugin.
A spokesperson for Workday declined to comment beyond the filing.
Shares of Workday are down about 34% from a year ago. The company announced a larger round of layoffs last year, citing a need to invest more heavily in strategic areas such as AI. It had more than 20,400 employees as of January 31, 2025.
Workday is also dealing with a class-action lawsuit that alleges it uses AI to discriminate against candidates based on race, age, and disability. The company has said the case is without merit and denies the allegations.
Are you a current or former employee at Workday or another tech company whose stock is down significantly this year? Contact Sarah E. Needleman at [email protected] or via encrypted messaging app Signal at 732-991-1100. Use a personal email address, a nonwork WiFi network, and a nonwork device; here’s our guide to sharing information securely.
