Workday announced that Chief Executive Officer Carl Eischenbach is stepping down effective immediately. The company's co-founder, Aneel Bhusri, who previously served as CEO, will assume the role.

Bhusri has held multiple senior positions at the software firm: he was co-CEO from 2009 to 2014, CEO from 2014 to 2020, co-CEO again from 2020 to 2024, and executive chairman from 2024 to 2026.

Eischenbach served as co-CEO alongside Bhusri starting in 2022 and began his tenure as sole CEO in 2024.

Software stocks, including Workday, have faced sustained pressure in recent months as investors grow concerned about the potential disruptive impact of artificial intelligence on the industry. Workday's stock declined 17% last year and has fallen more than 20% year-to-date. On Monday, the company's share price dropped 5%.

In a statement, Bhusri said, "We are entering one of the most pivotal periods in our company's history. The transformation brought by AI is more profound than software-as-a-service (SaaS), and it will define the next generation of market leaders." Major SaaS companies include Salesforce, Oracle, and Microsoft.

Last month, Eischenbach attempted to downplay concerns about AI's impact on the software sector, telling CNBC that such claims were "overstated" and "not true."

Workday reduced its workforce by approximately 1,750 employees last year to increase investment in technology.

In Monday's announcement, Eischenbach stated, "It has been an honor to serve as CEO for the past three years. I am proud of all we have accomplished—strengthening operational management, achieving global expansion, broadening our industry footprint, and laying a critical foundation in artificial intelligence."