Common Questions

Why did Workday's share price fall 32% in 2026?

Workday shares dropped sharply after investors interpreted management's refusal to announce deeper AI-driven layoffs as a sign the company was not moving fast enough on automation. Rivals in enterprise software that did announce cuts saw their stocks rewarded.Source: Lowdown briefing

Who is Workday's CEO in 2026?

Aneel Bhusri, co-founder of Workday, returned as CEO in February 2026 after serving as executive chair, as the company accelerated its AI-focused strategy.Source: Workday press release, February 2026

How many employees did Workday cut in its 2025 restructuring?

Workday cut approximately 7.5% of its workforce in February 2025 and a further 2% in early 2026, totalling roughly 9.5% of staff across two restructuring rounds at a cost of around $303 million.Source: Workday SEC filings

Background

Workday became a test case for Wall Street's new calculus on AI and employment when its shares fell 32% in a single session after management declined to match rivals' mass layoffs, signalling to investors that the company was not moving fast enough to replace human roles with AI systems. The stock reaction crystallised a stark market dynamic: in 2026, companies that announce AI-driven headcount reductions are being rewarded, while those that retain workers face punishing sell-offs.

Workday was co-founded in 2005 by Dave Duffield and Aneel Bhusri to build cloud-native enterprise software for human resources and financial management. It grew to over 20,500 employees serving customers in more than 175 countries. Bhusri stepped back from the CEO role in 2020, returned as co-CEO, and then as executive chair before being reinstated as sole CEO in February 2026 as the company pivoted its strategy around AI-first workflows. Workday had already cut roughly 7.5% of staff in February 2025 and a further ~2% in early 2026.

The company's core products — Workday HCM for HR and Workday Financials — sit precisely in the workflow categories that large language models threaten most directly. Competitors such as Salesforce have made aggressive agentic AI launches a centrepiece of investor communications, intensifying scrutiny of Workday's AI roadmap.