Sunday, May 25, 2025

Workday layoffs: Human capital management firm to slash 8.5% of workforce amid AI surge

 




Workday, a leading human capital management firm, has announced plans to lay off approximately 1,750 employees, representing about 8.5% of its global workforce. This decision is part of a strategic shift to prioritize artificial intelligence (AI) and streamline operations.

📉 Restructuring Details:

The restructuring is expected to incur costs between $230 million and $270 million, primarily for severance payments and related expenses. Affected employees in the U.S. will receive a minimum of 12 weeks' severance pay, with additional compensation based on tenure. Workday has also pledged to provide career services, immigration support, and extended stock vesting options to those impacted
 
📊 Financial Performance:

Despite the workforce reduction, Workday reported strong financial results, with a 13.4% year-over-year increase in subscription revenue to $2.06 billion. Analysts maintain a positive outlook, with 77% of them rating the stock as a "Buy" or equivalent .
This move aligns with broader industry trends, as companies across various sectors are restructuring to integrate AI technologies and adapt to changing market dynamics .

#WorkdayLayoffs
#AIinHR
#DigitalTransformation
#FutureOfWork
#AIImpact
#HRTech
#TechLayoffs2025
#WorkforceAutomation
#HumanCapitalManagement
#ReskillingRevolution

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