The SaaS-y HR vendor said most of the cuts will be in non-revenue-generating functions in its Global Customer Operations team.
The registry sought more details and a company representative referred us to a regulatory filing.
Workday warned that costs related to the layoffs will impact margins, which the company will reveal in its next earnings announcement on Feb. 24.
During its last earnings call in November, Workday said it performed well against its efficiency targets and expects quarterly GAAP operating margins to be 9.5 percent and fiscal year GAAP margins to be eight percent.
Workday now expects GAAP operating margins to be 24 to 25 percentage points lower for the quarter and 22 to 23 percentage points lower for the full fiscal year.
“Workday estimates that it will incur approximately $135 million in costs… consisting of approximately $40 million in future cash expenses related to severance, employee benefits and related costs and approximately $15 million in non-cash costs for stock-based compensation,” the regulatory filing said. “The charges also consist of approximately $80 million in non-cash charges related to the impairment of certain office space and long-lived assets.”
As of January 2025, Workday’s global workforce consisted of more than 20,400 employees in 34 countries, with approximately 63 percent of them in the US.
Last February, Workday announced plans to cut eight percent of its workforce – about 1,600 jobs. The layoffs announced yesterday could affect around 400 jobs. ®
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