Workday to cut about 1,750 jobs, or 8.5% of workforce in restructuring

In a regulatory filing, Workday (WDAY) announced a restructuring Plan intended to prioritize its investments and continue advancing Workday’s ongoing focus on durable growth. The Plan is expected to result in the elimination of approximately 1,750 positions, or 8.5% of Workday’s current workforce. Workday expects to continue to hire in key strategic areas and locations throughout its fiscal year ending January 31, 2026. In connection with the Plan, Workday expects to exit certain owned office space. Workday estimates that it will incur approximately $230M-$270M in charges in connection with the Plan, of which approximately $60M-$70M is expected to be recognized in the fourth quarter of fiscal 2025, and the remainder is expected to be recognized in the first quarter of fiscal 2026. These charges consist primarily of approximately $145M-$175M of future cash expenditures related to severance payments, employee benefits, and related costs; and approximately $50M-$60M in non-cash charges for stock-based compensation. The charges also consist of approximately $35M in non-cash charges related to the impairment of office space that Workday expects to record in the first quarter of fiscal 2026. The actions associated with the Plan are expected to be substantially complete by the second quarter of fiscal 2026, subject to local law and consultation requirements.