Workday announces CEO change, shares drop as analysts flag questionable timing

Core Viewpoint - Workday Inc announced a leadership change with co-founder Aneel Bhusri returning as CEO, leading to a more than 6% drop in shares, raising concerns among analysts regarding the timing and implications of this decision [2][3][4]. Group 1: Leadership Change - Aneel Bhusri will replace Carl Eschenbach as CEO, who has served in this role for the past three years and will remain as a strategic advisor [2]. - The leadership change comes shortly after the end of the fiscal Q4, which has raised questions about the timing [3][4]. Group 2: Analyst Concerns - Analysts at Jefferies expressed skepticism about the leadership transition, suggesting that it raises questions about the company's direction, especially since Bhusri previously handed over the CEO role to focus on product and AI [4]. - There are concerns that this move may indicate potential further management changes and doubts about Workday's ability to meet medium-term targets, particularly in light of slowed growth and potential margin pressures [4]. - Analysts are awaiting more clarity on the situation during Workday's earnings release scheduled for February 24 [5].