RestructuringSep 29, 2026, 04:06 PM

Workday Restructures, Cuts ~2.5% Workforce; Reaffirms Guidance

AI Summary

Workday, Inc. announced a reorganization impacting approximately 2.5% of its workforce, primarily within the Product and Technology team, along with select leased office space reductions. The company is reiterating its fiscal 2027 financial guidance but now expects its GAAP operating margin to be lower than previously guided due to these restructuring activities. Workday estimates incurring charges between $65 million and $80 million, with a significant portion recognized in the third quarter of fiscal 2027.

Key Highlights

Workday announces reorganization impacting ~2.5% of workforce, primarily in Product & Technology.
Company reiterates FY27 financial guidance, adjusting GAAP operating margin expectations.
Workday estimates $65M-$80M in charges related to workforce reduction and office space consolidation.
Approximately $55M-$70M in charges expected in Q3 FY27, with $10M in Q4 FY27.
Charges include $40M-$55M for severance/benefits and $10M in non-cash stock-based compensation.
Non-cash charges of ~$15M related to leased office space impairment are also expected.

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Workday, Inc.

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