Core Insights - Workday's CEO Carl Eschenbach is stepping down, with cofounder Aneel Bhusri taking over the role, marking Bhusri's return to leadership after previously serving as CEO multiple times [1][3] - The company recently laid off approximately 400 employees, representing about 2% of its workforce, to realign resources with its priorities [1][3] - Workday's shares have declined roughly 6% on the day of the announcement and are down about 43% compared to a year ago [2] Leadership Transition - Aneel Bhusri has a long history with Workday, having served as co-CEO and CEO in various capacities from 2009 to 2024 [3] - Bhusri's leadership is expected to guide Workday through a transformative period influenced by advancements in AI, as noted by Mark Hawkins, the vice chair [2] Layoff Context - The recent layoffs follow a larger round of layoffs last year, which were also attributed to the need for strategic investment in areas like AI [4] - Workday had over 20,400 employees as of January 31, 2025, indicating a significant workforce size prior to the layoffs [4] Market Reaction - The software sector, including Workday, has faced stock price declines following the introduction of new AI tools by competitors, such as Anthropic's Claude Cowork plugin [4] - Eschenbach previously expressed confidence in Workday's position in the AI landscape, suggesting that the company is well-equipped to leverage AI advancements rather than be hindered by them [5]

Core Viewpoint - Workday is laying off approximately 400 employees, representing about 2% of its workforce, to realign resources and focus on top priorities [1] Group 1: Layoffs and Workforce Changes - The layoffs will primarily impact non-revenue-generating roles within the global customer service team [1] - Workday plans to continue hiring in strategic areas and locations despite the layoffs [1] Group 2: Market and Investor Sentiment - Recent developments in artificial intelligence have negatively affected investor outlook for many software companies, including Workday [2] - Shares of Workday have decreased by about 34% compared to a year ago [3] Group 3: Legal Issues - Workday is facing a class-action lawsuit alleging discrimination in its AI hiring practices based on race, age, and disability, which the company denies [3]