Working day puts 1,750 employees or approx. 8.5% of its workforce

New York (AP) – Workday cuts about 1,750 jobs, or 8.5% of its workforce.

In a Wednesday Memo to the employees published in a securities archiving, Workday CEO Carl Eschenbach said the redundancies were necessary for continuous growth efforts in the company – including a special focus on artificial intelligence investments.

“When we start our new fiscal year, we are in a central moment,” Eschenbach wrote. “Companies everywhere genimagine how the work is being done, and the rising demand for AI has the potential to drive a new era with growth for working day.”

Workday aims to notify most of the employees affected by the cuts on Wednesday. “I realize this is tough news and it affects us all,” Eschenbach added – called the employees to work from or go home for the day.

The manufacturer of the Human Resources software also revealed that it expects to leave certain office space but not specified a timeline or what locations may be affected. Still, Eschenbach’s memo notes that the restructuring will work to expand Workday’s global reach by “investing in strategic locations.”

And despite the current redundancies, the manufacturer of Human Resources software says it still expects to continue to hire in certain places and positions in the next year.

Workday estimates that it will incur between $ 230 million and $ 270 million in fees related to the restructuring plan – primarily in severance payments, employee benefits and other related costs. All staff laid off in the United States will be offered at least 12 weeks of salary, with additional weeks based on the period of employment, Eschenbach said Wednesday, adding that affected workers in other countries will be offered packages based on local standards.

The job cutters on the work day arrive when redundancies continue across the technology sector – including from big names like IntelAt Cisco and Apple Over the past year – in the midst of a wider wave of industry consolidation. Many companies have approached restructuring as they struggle with how to stay competitive in developing consumer costs while increasing AI-related investments.

Working day plans to release earnings results for its full financial year in 2025 later this month. In the third quarter, the Pleasure, California-based company, announced a net income of $ 193 million and revenue of $ 2.16 billion from a net income of $ 132 million and a $ 2.09 billion revenue in the period earlier.

Shares for working day increased more than 2.5% at noon Wednesday.