Workday cuts hundreds of jobs
The cloud software company Workday plans to cut hundreds of jobs as it lays off about 3 percent of its global workforce.
The company told employees in a message on Tuesday that it decided to restructure and realign some teams across the company, leading to the layoffs, the majority of which will be those working on product and technology, according to a copy of the message from the Securities and Exchange Commission.
The message said company leaders will meet with the affected employees and expect notifications to be completed by the end of the day Tuesday, Pacific Standard Time.
“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,” the message states. “As we navigate this uncertain environment, it’s important we help ensure Workday is set up for continued growth for many years to come.”
CNBC reported that the company’s head count totaled more than 17,500 employees in October, so about 525 people will likely be laid off.
Workday said the reason for the layoffs was not overhiring, which has been cited as a reason for other technology companies laying off workers, and it plans to increase its workforce in fiscal 2024. It said it does not plan to lay off workers to this extent in the “foreseeable future.”
It said the company will provide affected employees in the United States with three months of pay, an additional two weeks of pay beyond that for each year of service, medical benefits for up to six months, and eligibility for bonuses, career services and immigration support during fiscal 2023. Employees based outside the U.S. will receive similar severance packages.
It said it will share more information about the layoffs and what they mean for the company on Wednesday.
“As we’ve said from day one, we will always lean on our values to guide our decisions,” the message states. “While it may be difficult to see the connection between our values and today’s news, it’s important that we structure Workday in a way that helps us continue to grow and sustain our business.”
Several Big Tech companies, such as Facebook’s parent company, Meta, and Amazon, have cited concerns about the economic outlook as factors in their decisions to lay off employees in recent months.
PayPal also announced on Tuesday that it will lay off about 2,000 employees, equal to about 7 percent of its global workforce. The layoffs will take place over the next weeks.
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