Amid the complex and volatile global economic situation, enterprise resource planning software company Workday Inc. has announced a major adjustment plan. The company decided to cut about 8.5% of its employees to drive business growth and increase investment in artificial intelligence. This decision not only reflects industry trends, but also demonstrates Workday's strategic transformation in fierce competition.
Recently, enterprise resource planning software company Workday Inc. announced that it would cut about 8.5% of its employees, or 1,760 positions, to drive the company's growth and increase investment in artificial intelligence. The news was announced to all employees through the Securities and Exchange Commission filing. CEO Carl Eschenbach pointed out in the memorandum that Workday is at a "critical moment" and that all walks of life are reimagining how to work, and the increasing demand for artificial intelligence is The company brings new growth opportunities.
"This creates a huge opportunity for us, but we need to make some adjustments to better connect resources with our customers' changing needs," Eschenbach said in the memorandum. He stressed that this means Workday will make strategic investments," he said. , help teams collaborate better, accelerate market innovation, and make it easier for customers and partners to work with companies.
However, for about 1,750 Workday employees, this "huge opportunity" means they will be fired. The company will provide US employees with a salary of at least 12 weeks, and the specific time will be adjusted according to the employee's working years. In addition, layoffs will receive additional vesting, career services, benefits support, and immigration support from restricted stock units.
In addition to layoffs, a series of strategic adjustments were mentioned in the memorandum. Workday will focus more on strategic investments, continue to recruit in key areas, and be committed to artificial intelligence and platform innovation. At the same time, the company will evaluate the return on investment of all plans to ensure effective allocation of resources. Eschenbach said Workday is also redesigning processes to enable faster decision-making and innovation, while clarifying roles and responsibilities to enhance team synergy. In addition, Workday plans to expand its global footprint and better serve its global customers by investing in a strategic position with strong talent.
According to the Associated Press, Workday expects layoffs and related workplace adjustments to incur $230 million to $270 million in fees, mainly to pay for severance payments. Similar to Workday, Salesforce Inc., a company that recently announced layoffs, also announced on February 4 that it would cut more than 1,000 positions.
Although Workday's layoff decisions are difficult, they reflect the company's strategic layout in the field of artificial intelligence. In the future, it is worth paying attention to whether Workday can achieve continuous growth through this transformation.