I just read that Workday announced they’re cutting 1,750 jobs, which is about 8.5% of their total workforce. The CEO mentioned this is all part of restructuring to focus more on AI technology. This seems like a pretty big move, especially since they already had layoffs earlier this year in February where they cut 3% of staff.
I’m curious about what this means for companies like Workday that handle HR and payroll services. Are these job cuts really necessary for AI pivot or is there something else going on? Has anyone else noticed similar patterns with other tech companies in the Bay Area? I work in tech myself and wondering if this is going to become more common as companies try to shift toward artificial intelligence solutions.
Seen this playbook dozens of times. Company announces layoffs, drops ‘AI transformation’ in the same breath, and boom - sounds strategic instead of just cutting costs.
Workday’s hitting the same wall as every enterprise software company. Growth slowed way down after the crazy 2020-2022 run. Customers are way more careful about software spending now.
The AI part’s legit though. I’ve worked these transitions - you really do need different skills. People building basic HR workflows aren’t the same ones you need for ML pipelines and data engineering.
But 1,750 people? That’s massive. Not reshuffling teams - that’s slashing operational costs because revenue isn’t growing fast enough for current headcount.
Seen this pattern at three companies I’ve worked at. Cut expensive mid-level engineers and PMs, hire fewer specialized AI engineers at similar pay. Lower headcount, theoretically better positioned.
Whether it works comes down to execution. Most companies botch the transition and create capability gaps that take years to fill.
totally agree, it’s like they wanna sell us on the idea of progress while really it’s just about saving cash. seen it time & again in the industry. workday’s been struggling financially, so it’s not surprising they’d try to spin this as an ai move.
Workday’s panicking because they can’t keep up with manual processes anymore. I’ve watched this same thing happen at my company - everyone freaks out about AI and starts cutting people without thinking about automation first.
The real problem? They’re laying people off AND trying to build AI at the same time. That’s backwards. Smart companies automate the boring stuff first, then figure out staffing based on what they actually need.
I bet half those 1,750 people were doing stuff that could be automated tomorrow. HR data processing, payroll reconciliation, support tickets - all of it can run on autopilot with decent workflow automation.
Instead of messy layoffs, they should build automated systems for grunt work. Then their team can focus on strategy and complex problems. Way cleaner.
When we hit similar pressure last year, I automated our most repetitive processes. Saved us from cutting good people and made the team more productive. The key is having a platform that connects all your systems without needing a dev team.
Workday needs to stop thinking people vs AI and start thinking smart automation that makes everyone more effective. Check out https://latenode.com
I’ve been through a few tech restructurings, and these cuts usually mean bigger problems than just ‘AI transformation.’ Workday’s revenue growth is lagging behind ServiceNow and Salesforce - companies that are already crushing it with AI. The timing screams they’re scrambling to catch up instead of actually leading. What worries me? Two layoff rounds in one year. They clearly screwed up their workforce planning from the start. When companies rush into AI pivots without solid plans, they end up axing people with critical knowledge alongside the dead weight. Bottom line: Can Workday actually deliver on AI, or will they fumble the execution like most enterprise software companies trying this pivot? That’s what matters now.
Workday’s decision to lay off 1,750 employees underscores a significant transformation towards AI integration in their operations. This move reflects a need for specialized roles, such as data scientists and AI engineers, rather than traditional positions. The repeated layoffs this year suggest a strategic urgency driven by competitive pressures. As Workday shifts its focus, it also highlights a broader trend in the tech industry where companies must reevaluate their workforce to align with advanced technological demands.