Workday to Cut 2% of Workforce

Dow Jones

02/05

By Kelly Cloonan

Workday expects to cut about 2% of its workforce as part of a broader reorganization at the human-resources software group.

The layoffs will primarily affect non-revenue generating roles in Workday's customer operations department, according to a Wednesday filing with the Securities and Exchange Commission.

The cuts come after Workday laid off about 8% of its staff as part of a restructuring plan last February. The company had employed about 20,400 workers at the end of January 2025, according to its latest annual filing.

The latest round of layoffs aims to align the company's people and resources with its priorities for its current fiscal year, which started Feb. 1.

Workday said it plans to continue to hire in certain areas and locations throughout this fiscal year, including in additional revenue-generating departments.

The company expects it will incur about $135 million in charges recognized in the fourth quarter of fiscal 2026, consisting of about $40 million of future cash expenditures related to severance payments, employee benefits and related costs and about $15 million in non-cash charges for stock-based compensation.

Workday now projects its operating margin will be 24 to 25 percentage points lower than its fourth-quarter adjusted operating margin, and its fiscal year operating margin to be 22 to 23 percentage points lower than its full-year adjusted operating margin.

The company expects the rest of its fourth-quarter and full-year results will be in line with the guidance it provided in November.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

February 04, 2026 17:24 ET (22:24 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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