Workday lays off 1,750 employees, citing demand for AI

Workday, the HR and finance management company, is the latest tech giant to lay off a mass of employees in the name of AI. In a Wednesday announcement titled “Changes to Position Workday for the Future,” the organization shared that it’s eliminating 1,750 employees, about 8.5 percent of its workforce. The public statement from CEO Carl Eschenbach was initially emailed to employees.

Within a series of paragraphs in which Eschenbach acted really torn up about choosing AI over people, he summed up this trend pretty clearly: “Companies everywhere are reimagining how work gets done, and the increasing demand for AI has the potential to drive a new era of growth for Workday.”

Eschenbach later adds that Workday will be “prioritizing innovation investments like AI and platform development, and rigorously evaluating the ROI of others across the board.” Though, he claims the company will also “hire in key strategic areas and locations” this year.

According to the announcement, Workday tried to meet with as many impacted employees as possible on Wednesday, so some individuals might not immediately know their fate. US-based employees will receive at least 12 weeks of pay, while employees in other countries (with potentially stronger protections for workers) will receive benefits based on local regulations.