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Workday cuts about 2.5% of workforce, expects $65M-$80M in charges as it trims operating margin guidance
WDAYWorkday, Inc.
Workday announced a workforce reduction of approximately 2.5% of its current employees, primarily within the Product and Technology team, alongside select leased office space reductions to align with strategic growth priorities. The company estimates it will incur $65 million to $80 million in charges related to these exit activities, including severance, stock-based compensation, and lease impairments. Approximately $55 million to $70 million of these costs are expected to be recognized in the third quarter of fiscal 2027, with the remaining $10 million in the fourth quarter. Workday also revised its fiscal 2027 GAAP operating margin guidance downward by approximately 20 percentage points for Q3 and 19 percentage points for the full year due to these charges. The company operates in the enterprise software industry, providing cloud-based financial management and human capital management applications.