Workday CEO Steps Down Amidst Layoffs and AI Shift
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A significant leadership change is underway at Workday, a leading provider of enterprise cloud applications for finance and human resources. Carl Eschenbach, the current CEO, is stepping down and will be replaced by Workday co-founder and Executive Chair, Aneel Bhusri. This transition comes less than a week after the company announced layoffs impacting approximately 400 employees – roughly 2% of its workforce.
A Return to the Helm for Aneel Bhusri
This isn’t Bhusri’s first time leading Workday. He has previously served as CEO on three separate occasions: from 2009 to 2014 alongside co-founder Dave Duffield, from 2014 to 2020, and again as co-CEO from 2020 to 2024. His extensive experience and deep understanding of Workday’s culture make him a natural choice to navigate the company through its next phase.
Mark Hawkins, Workday Vice Chair and Lead Independent Director, stated, “As we enter a defining moment shaped by AI, there is no one better than Aneel to lead this next chapter. His vision, conviction, and deep connection to Workday’s culture will position the company to continue to lead in a changing landscape.” Eschenbach will transition to a role as a strategic advisor to Bhusri.
Market Reaction and Recent Layoffs
The news of the leadership change has impacted Workday’s stock price, with shares down approximately 6% today and roughly 43% over the past year. The recent layoffs were attributed to a strategic realignment of resources to prioritize key areas, including investment in Artificial Intelligence (AI).
Workday isn’t alone in adjusting its workforce. Last year, the company announced another round of layoffs, also citing the need to focus investment on strategic areas like AI. As of January 31, 2025, Workday employs over 20,400 people globally.
The Impact of AI on the Software Industry
The software industry has been closely watching the advancements in AI, particularly following the launch of Anthropic’s Claude Cowork plugin. This industry-specific tool can automate clerical tasks, such as compliance tracking, leading to a dip in share prices for companies like Intuit, Salesforce, and LegalZoom, in addition to Workday.
Despite concerns about AI’s potential impact, Eschenbach recently expressed confidence in Workday’s position during an interview with CNBC at the World Economic Forum in Davos. He stated, “We are uniquely positioned to be one of the AI winners in the enterprise because of our incumbency, and lastly, because of the trust we get from our customers. We have the cleanest set of data in the industry, and AI is a tailwind for us. It’s absolutely not a headwind.”
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Source: Business Insider
