Workday to cut about 525 jobs

Jan. 31 (UPI) -- Workday will cut 3% of its workforce, the cloud-sharing company's co-CEOs announced Tuesday. The layoffs will affect approximately 525 employees.

"While our confidence in the fundamentals of our business and future growth prospects remains strong, we continue to operate in a global economic environment that is challenging for companies of all sizes," reads a note to employees from co-CEOs Carl Eschenbach and Aneel Bhusri.

"As a result, we have decided to restructure and realign some teams across Workday, leading to the difficult decision to eliminate roles impacting approximately 3% of our global workforce, with the majority happening in our Product & Technology organization."

The number of Workday employees grew by 15% between January and October of 2022, but Eschenback and Bhusri said the current layoffs are not a result of over-hiring.

"We realize the that this news raises many questions, including what will happen in the future. These moves are not the result of over-hiring and in fact, we plan to increase the size of our global workforce in FY24. Based on what know today, we have no plans to take similar action of this size in the foreseeable future," the note from Eschenbach and Bhusri said.

There have been a series of significant layoffs within the tech industry in recent months. Earlier this month Amazon confirmed that it would be eliminating 18,000 jobs and Salesforce cut approximately 10% of its staff. Microsoft announced 10,000 layoffs are expected before the end of 2023's third quarter.