Workday will cut about 2.5% of its workforce, mostly in its Product and Technology team. A Form 8-K filed with the United States Securities and Exchange Commission on 29 September 2026 put the cost at $65 million to $80 million. The filing quantifies the Workday layoffs in money, not in people.
What the Workday Layoffs Filing Actually Discloses
The 8-K is short and specific about money, and silent about people. It states that “certain functions within Workday announced reorganizations designed to better align team structures with Workday’s strategic growth priorities,” including a reduction of approximately 2.5% of the current workforce, primarily within the Product and Technology team, together with cuts to some leased office space.
The charge breaks down into three parts, and only the first involves cash leaving the company:
| Charge | Amount | Type |
|---|---|---|
| Severance, employee benefits and related costs | $40 million to $55 million | Future cash spending |
| Stock-based compensation | About $10 million | Non-cash |
| Impairment of certain leased office space | About $15 million | Non-cash |
| Total | $65 million to $80 million |
An impairment is an accounting write-down of an asset’s carrying value. In this case Workday is marking down offices it has leased but no longer expects to use, which costs nothing in cash but reduces reported profit.
Some coverage has put the total at $65 million to $85 million. Workday’s own filing gives the range as approximately $65 million to $80 million, and the three components it lists add up to that figure.
Where the 525 Figure Comes From
Workday did not say how many people are affected. The widely reported figures of about 500 or 525 employees are arithmetic, not disclosure: 2.5% of a global workforce reported at roughly 21,000.
That matters because the base is an estimate. The filing says “approximately 2.5%” of the “current workforce” without stating what that workforce is, so any headcount derived from it inherits two layers of rounding. The precise number of roles will only become clear through local notification processes and, in some jurisdictions, statutory filings.
When the Cuts and the Charges Land
Workday’s own timetable runs across three fiscal quarters, and its financial year does not match the calendar. As of 1 October 2026, this is the schedule the filing sets out:
- Third quarter of fiscal 2027: approximately $55 million to $70 million of the charges recognised.
- Fourth quarter of fiscal 2027: approximately $10 million recognised, and the office space actions completed.
- First quarter of fiscal 2028: the employee actions substantially completed, subject to local law and consultation requirements.
That last condition is the reason the process will not finish quickly. In several European jurisdictions an employer must consult works councils or employee representatives before redundancies take effect, which sets the pace regardless of when the decision was announced in California.
The filing also spells out the effect on reported margins. Workday expects its third-quarter GAAP operating margin to be about 20 to 21 percentage points lower than its non-GAAP operating margin, and the full-year gap to be about 19 percentage points. GAAP figures follow standard accounting rules and include one-off costs such as these; non-GAAP figures strip them out, which is why the two diverge so sharply in a restructuring quarter.
The Second Reduction of 2026
This is Workday’s second announced workforce reduction this calendar year. In early February 2026 the company cut about 2% of staff, roughly 400 roles, concentrated in its Global Customer Operations team.
The two rounds sit either side of a change at the top. Carl Eschenbach stepped down as chief executive and left the board, and co-founder Aneel Bhusri returned as chief executive with effect from 6 February 2026, a transition Workday announced days after the February cuts. Bhusri had previously led the company from 2014 to 2020 and served as co-chief executive until January 2024.
Bhusri framed his return around artificial intelligence, describing it as a larger shift than the move to software as a service. The September reorganisation falls in the Product and Technology team, which is where that work sits.
What Workday Has Not Said
The company has not given artificial intelligence as a reason for either reduction. Neither the February nor the September disclosure attributes the cuts to AI adoption, automation or productivity gains from its own tools, and the September filing uses only the language of aligning team structures with growth priorities.
That is a meaningful distinction in a year when other enterprise vendors have been explicit. Oracle’s restructuring filing cited AI adoption directly, which makes Workday’s silence on the point a choice rather than an oversight.
Workday has said it will continue hiring in what it calls key strategic areas and locations through fiscal 2027, so the reduction is a reallocation rather than a straightforward shrinking of the company. It has not published which areas those are, how many roles it expects to add, or which offices are being written down.
Frequently Asked Questions
How Many Jobs Do the Workday Layoffs Affect?
Workday’s 8-K filing of 29 September 2026 says approximately 2.5% of its current workforce, primarily in Product and Technology. It gives no headcount. Figures of about 500 to 525 roles reported elsewhere are calculated from a global workforce of roughly 21,000.
How Much Will the Workday Layoffs Cost?
Approximately $65 million to $80 million, according to the filing. That comprises $40 million to $55 million in cash severance and benefits, about $10 million in stock-based compensation and about $15 million in office lease impairments.
Did Workday Blame AI for the Job Cuts?
No. Neither the September 2026 filing nor the February 2026 round attributes the reductions to artificial intelligence. The stated reason is aligning team structures with strategic growth priorities.
When Will the Workday Layoffs Be Completed?
The employee actions are expected to be substantially completed by the first quarter of Workday’s fiscal 2028, subject to local law and consultation requirements. Office space actions are expected to finish in the fourth quarter of fiscal 2027.
Is This Workday’s First Round of Layoffs in 2026?
No. It is the second. In early February 2026 Workday cut about 2% of staff, roughly 400 roles, mainly in Global Customer Operations.
