However, the layoffs will make Workday’s fourth quarter operating margin under Generally Accepted Accounting Principles (GAAP) 22 to 23 percentage points lower than its fourth quarter non-GAAP operating margin and its fiscal 2025 full-year GAAP operating margin 21 percentage points lower than its full-year non-GAAP operating margin.

Workday is laying off 1,750 employees, essentially cutting down its total workforce by 8.5%, CEO Carl Eschenbach announced Wednesday.

CEO Carl Eschenbach said the Bay Area-based software firm will be “prioritizing innovation investments like AI and platform development.”

Workday is cutting about 1,750 jobs, or 8.5% of its workforce. Workday CEO Carl Eschenbach said Wednesday the layoffs were necessary for ongoing growth efforts at the company — including a particular focus on artificial intelligence investments.

Workday becomes the latest tech company in recent weeks to cut headcount. Amazon, Okta and Cruise have also laid off employees.