Workday lays off 1,750 employees in a ‘difficult but necessary’ decision

American human resources management company Workday has announced plans to lay off as many as 1,750 of its employees. Those impacted by the mass layoff make up around 8.5 per cent of the company's total workforce.

In a memo on Wednesday, CEO Carl Eschenbach said the “difficult, but necessary” decision would enable Workday to prioritise investments in artificial intelligence (AI) and expand its global presence.

“I realise this is tough news, and it affects all of us—the Workmates who are leaving and those who’ll continue with us. I encourage you to work from home or head home if you’re already in the office," Eschenbach was quoted as saying in his note by USA Today.

Workday shares rise 4 per cent

The impacted employees will be notified shortly, the CEO said through the memo. After the announcement of the mass layoffs, Workday's shares jumped by more than 4 per cent in premarket trading.

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According to USA Today, Eschenbach announced that the exit formalities will vary depending on the area, as some local requirements call for a consultation period.

Termination benefits

According to Eschenbach's memo, the termination benefits for US-based employees would include at least 12 weeks’ worth of severance pay, with tenure being the deciding factor in who qualifies for additional weeks.

The memo stated that affected employees would also receive stock unit grants, career services, benefits support and immigration support. Employees in other regions would be offered similar packages to their US counterparts, provided local regulations allow it, Eschenbach noted.

Workday's total workforce included more than 20,400 employees by late October, according to Bloomberg. It was reportedly one of the few large-scale tech companies that remained untouched by mass layoffs in recent years.

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Some reports suggest that the company also has plans to close some of its office spaces. The move will reportedly be part of Workday's cost-cutting measures.

FAQs

1. What termination benefits has Workday announced for its laid-off employees?
As per CEO Carl Eschenbach's memo, US-based employees will receive at least 12 weeks of severance pay, with additional weeks determined by their tenure.


2. Will employees outside the US receive the same benefits?
Employees outside the US will be offered similar packages, provided local regulations permit, Eschenbach stated.